U.S. Dollar Enjoys Another Weekly Gain on Growth

A gauge of the dollar against 10 major counterparts headed for a sixth weekly gain as an improving U.S. growth outlook added to speculation the Federal Reserve will raise borrowing costs next year.

The U.S. currency has risen versus all of its 16 most-traded peers this month as the Fed stays on track to end its bond-buying program, known as quantitative easing, in October. The yen headed for its first weekly advance since the start of August as the U.S. expanded its bombing of Islamic State militants, spurring demand for haven assets. New Zealand’s dollar rebounded after its biggest loss in 17 months.

“The strong dollar trend across the board is continuing,” said Kazuo Shirai, a trader at Union Bank NA in Los Angeles. “The Fed is on track to end QE in October and is likely to raise rates by the middle of next year as planned, while we haven’t seen much improvement in other nations.”

Bloomberg

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