(REUTERS) -- The euro dipped to a session low against the dollar in volatile trade while European stocks gained and German Bunds fell on Wednesday after the European Central Bank allotted 529.531 billion euros in its second tender of three-year cash.

The euro fell to a session low of $1.3435 from around $1.3465 before the announcement, having briefly risen just afterwards. Traders said the result was in line with expectations and had been more or less priced in, which meant to the euro's scope for gains was limited.

The FTSEurofirst 300 .FTEU3 index of top European shares extended gains, up 0.7 percent at 1,083.97 points. Higher yielding currencies also hit multi-month highs.

German Bund futures extended losses to stand down 57 ticks on the day at 139.49.