The dollar was set for its first back-to-back weekly gains in more than three months as surging Treasury yields and bets on further Fed rate hikes supported it. The dollar index rose more than 1% this week to a two-month high, while the euro fell to $1.1370 and the yen traded near a three-week low at 158.8 per dollar.
The dollar was set for its first back-to-back weekly gains in more than three months on Friday, supported by surging Treasury yields and mounting expectations of further Federal Reserve rate hikes. The dollar index climbed more than 1% this week to a two-month high, before edging slightly lower to 101.2.
The euro touched a two-month low of $1.1370, while sterling languished near a three-month low of $1.3220. The yen hovered near a three-week low at 158.8 per dollar, with its moves tempered by traders' concern about possible official intervention.
Markets repriced expectations for interest rates after the Fed tightened policy the previous week, supported by robust economic data and fresh energy supply concerns. Treasury selling sent long-dated yields to their highest in more than 20 years, while Fed officials said further rate increases may be warranted.
