Dollar nears one-week high amid US interest rate expectations

The dollar approached its highest level in a week against major currencies in trading today, Friday, heading towards ending a five-week losing streak, after recent economic data reduced bets on a significant cut in US interest rates.

The euro stabilized near its lowest level in two weeks against the dollar, affected by slowing inflation in Germany and Spain, which strengthened the chances of the European Central Bank easing its monetary policies.

As for the Japanese yen, it maintained its stability near the 145 level against the dollar after its decline yesterday, Thursday, as it was affected by the rise in US Treasury bond yields.

As for the dollar index, which measures the performance of the US currency against a basket of six major currencies, it stabilized at 101.34, after rising by 0.36% yesterday, recording its highest level since August 22 at 101.58.

The index is expected to record a 0.66% increase this week, achieving its best weekly performance since the beginning of August, and ending a five-week losing streak.

The dollar fell 0.14% against the yen to 144.78 yen, after hitting an overnight high of 145.55 yen, the highest since Aug. 23. The euro was little changed at $1.1082, having fallen to $1.10555 on Thursday. The pound was steady at $1.31655 after falling to $1.3146, its weakest since August 23.