© Reuters. The dollar is struggling to find a direction
Investing.com – The dollar struggling to find direction on Friday, but remained near a peak of five months, after reaching a high daily 93,46.
The dollar index, which measures the greenback’s strength versus a weighted basket based on the trade of six major currencies, was slightly decreased by 0.01% to 93,38 at 5: 14a.m EDT (9h14 GMT).
The dollar jumped more than 1% this week, while bond yields soared to a peak of seven years. The yield on the Treasury bond fell to 3.104 after reaching a high of 3.126 day-to-day.
The rise in bond yields, combined with the economic data positive and rising inflation, has strengthened forecasts that the federal Reserve will increase interest rates and will tighten the monetary policy.
The Fed has raised its rates in march and is expected to increase its rates two times more, although some investors expect a third increase.
Expectations of rising interest rates tend to boost the dollar, making the currency more attractive for investors in search of yield.
The us dollar appreciated against the yen, with USD / JPY rising 0.18% to 110,96 after that Japan has reported data on inflation, which did not reach the inflation target of 2%.
The euro is slightly higher, with the EUR / USD up 0.08% at 1,1803, while the pound sterling is falling, with the GBP / USD down 0.11% at 1,3500.
Elsewhere, the australian dollar is advancing, with the AUD / USD up 0.01% to 0,7512, while the NZD / USD rose 0.38% to 0,6904.