© Reuters. The dollar remained near a five-month high on Friday.
Investing.com – The dollar struggled for direction on Friday, but still remained near a five-month high, after reaching an overnight high of 93.46.
The , which measures the greenback’s strength against a trade-weighted basket of six major currencies, inched down 0.01% to 93.38 as of 5:14 AM ET (9:14 GMT).
The dollar surged over 1% this week, as bond yields jumped to a seven-year high. The yield on the benchmark Treasury note dipped to 3.104 after hitting an overnight high of 3.126.
The rise in bond yields, along with positive economic data and rising inflation, has boosted expectations that the Federal Reserve will increase interest rates and tighten monetary policy.
The Fed raised rates in March and is expected to raise rates twice more, with some investors expecting a third hike.
Expectations of higher interest rates tend to boost the dollar by making the currency more attractive to yield-seeking investors.
The dollar rose against the safe haven yen, with increasing 0.18% to 110.96 after Japan reported inflation data that failed to meet its 2% inflation target.
The euro was up slightly, with rising 0.08% to 1.1803, while sterling was lower, with down 0.11% to 1.3500.
Elsewhere, the Australian dollar was higher, with up 0.01% to 0.7512 while increased 0.38% to 0.6904.
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