The dollar held near a four-year
high against a basket of major currencies on Friday, and further gains looked
likely for the US currency as it boasted its the biggest yield advantage over
the euro in 15 years.
The dollar index is on track for its
11th successive weekly rise, a feat it hasn't achieved in four decades, as
investors prepare for an eventual rate hike in the United States
The European Central Bank and the
Bank of Japan, in contrast, are seen as likely to offer more stimulus to
support their flagging economies in coming months.
"At the moment, the economy
with strong business sentiment is that of the United States
The dollar index stood at 85.136, little
changed from late US
The yield premium US Treasuries
offer over German Bunds stood near 15-year highs on Thursday as markets weighed
the prospects of US
High bond yields tend to attract
more fund inflows as bond investments account for a big chunk of international
capital flows.
The euro traded at $1.2758, having
fallen to a 22-month low of $1.26955 on Thursday, breaking below an important
support around $1.2750 from triple bottoms hit in March-July 2013, pointing to
the chance of further declines.
The common currency also slumped to
a two-year low against the British pound on Thursday, falling as low as 77.855
pence . It last stood at 78.105.
Against the yen, it dropped to 138.43
yen in early Friday trade, its lowest level in two weeks.
The yen recovered slightly as a
sharp fall in Wall Street shares on Thursday sapped risk appetite and drove
demand for the safe-haven Japanese currency.
The dollar stood at 108.61 yen, having
lost a bit of momentum after hitting a six-year high of 109.46 yen a week ago.
The Australian dollar was another
casualty of the broad US dollar gains, trading at $0.8795, just above Thursday's
low of $0.8774 - a level not seen for nearly eight months.
The New Zealand
The kiwi traded at $0.7948, near a
trough of $0.7912 hit on Thursday, when the Reserve Bank of New Zealand
