The dollar rode U.S. Treasury yields higher on Friday and was set for its biggest weekly gain in more than two months, as mounting inflationary pressures from higher energy prices fuelled bets on a Federal Reserve rate hike this year, Reuters reported.
The dollar's climb gathered pace as traders in London came online, rising alongside U.S. Treasury yields that hit one-year peaks, as traders ramped up bets that the Fed would need to raise rates this year.
Against the dollar, the euro fell to a one-month low of $1.1632 and was set to lose 1.3% for the week.
The yen was on the weaker side of 158 per dollar despite domestic data pointing to a spike in wholesale inflation, bolstering the case for the Bank of Japan to raise interest rates as soon as June. It was last 0.1% lower at 158.47 per dollar.
Sterling touched its weakest in five weeks against the dollar and was on course for its biggest weekly fall since November 2024 as Prime Minister Keir Starmer battled to hold on to power after disastrous local election results last week.
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