U.S. Dollar Heading for Another Weekly Gain

The dollar headed for a fourth weekly gain, the longest stretch in 17 months, as a strengthening U.S. recovery and mounting tensions in Ukraine and the Middle East increased the allure of American assets.

The greenback was within 0.2 percent of its strongest in almost six months versus a basket of major peers, as a Citigroup Inc. gauge of U.S. economic surprises rose to the highest since May. The yen was poised for its first weekly gain in a month against the U.S. currency before the Bank of Japan decides policy today. The Australian and New Zealand dollars fell before data forecast to show imports slowed in China, the biggest trading partner of both South Pacific nations.

“Geopolitical tensions are the market’s main focus, fueling a flight to quality,” said Yasuhiro Kaizaki, a vice president for global markets in New York at Sumitomo Mitsui Trust Bank. “In that risk-off environment, high-yield currencies are being sold in favor of the dollar and yen.”

Bloomberg

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