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Dollar index at fresh 14-year peak on U.S. rate hike bets

Investing.com -

Investing.com - The dollar was hovering at a fresh 14-year peak against the other majors currencies on Friday, as optimism over the strength of the U.S. economy and expectations for a December rate hike by the Federal Reserve continued to boost demand for the greenback.

EUR/USD slipped 0.22% to an 11-month low of 1.0601.

The greenback remained broadly supported after strong U.S. initial jobless claims and inflation data on Thursday fueled further expectations for a rate hike at the Fed's December policy meeting.

In addition, Fed Chair Janet Yellen said in testimony to Congress that an increase in interest rates could be "appropriate relatively soon".

Meanwhile, the euro weakened after European Central Bank President Mario Draghi said earlier Friday that the central bank will continue to act as warranted using all instruments available.

Speaking at the 26th European Banking Congress, in Frankfurt, Draghi added that the euro zone's economic recovery still relies to a considerable degree on accommodative monetary policy.

Elsewhere, GBP/USD slipped 0.10% to 1.2409.

USD/JPY climbed 0.45% to a five-month high of 110.62, while USD/CHF edged up 0.16% to 1.0085.

The Australian dollar was weaker, with AUD/USD down 0.49% at 0.7371, while NZD/USD held steady at 0.7028.

Meanwhile, USD/CAD added 0.12% to trade at 1.3536

The U.S. dollar index, which measures the greenback's strength against a trade-weighted basket of six major currencies, was up 0.25% at a fresh 14-year peak of 101.25.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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