Amwal Al Ghad English - 2014-10-11 08:01:56
The dollar firmed for a second straight session on Friday after three consecutive days of losses, bolstered by safe-haven bids on worries about the health of the global economy with slow-downs evident in Europe, Japan, and China.
"Dollar strength is still on the table here going forward and the driver behind that is policy divergence," said Andrew Dilz, currency strategist at Tempus Consulting in Washington.
"We're seeing a rate hike in the United States by the second half of the year. At the same time, we're seeing fractures elsewhere in economic growth such as Europe."
The dollar index, however, a measure of the greenback's value against a basket of major currencies, ended the week on a negative note, its first in 13 weeks. The index also posted its largest weekly fall in six months.
In late trading, the dollar index .DXY was up 0.5 percent on the day at 85.842.
"If the dollar stays stronger for a longer, it keeps inflation down and helps the Federal Reserve to keep rates low longer," said Jack Flaherty, portfolio manager for the GAM Unconstrained Bond Fund of about $17 billion, in New York. More»