The dollar headed for its first weekly advance since the start of this month as a rally in stocks and accelerating growth fueled speculation the U.S. economy will be resilient to a slowdown in China.
The greenback has gained against all its Group-of-10 peers except the yen this week as traders increased to 54 percent the odds the Federal Reserve will raise interest rates this year, from as low as 46 percent on Tuesday. The currency of New Zealand, which has China as its biggest trading partner, led declines among major counterparts this week.
The Bloomberg Dollar Spot Index, which tracks the currency versus 10 major peers, has risen 0.5 percent this week to 1,205.76 as of 9:52 a.m. in Tokyo. The greenback appreciated 1.3 percent to $1.1236 per euro, and fell 0.8 percent to 121.13 yen. It was little changed Friday.
The dollar climbed for a third day versus the euro Thursday after a report showed U.S. gross domestic product rose at a 3.7 percent annualized rate in the second quarter, exceeding all estimates of economists surveyed by Bloomberg. A day earlier, Commerce Department data showed orders for capital goods increased by the most in a year in July.
Kansas City Fed President Esther George said it’s too soon to tell whether market volatility will affect the U.S. economy, and every policy-setting meeting is a live option to start raising rates.
The kiwi slid 2.9 percent to 64.95 U.S. cents this week and the Australian dollar dropped 1.7 percent to 71.89 cents.
Source : Bloomberg