The dollar traded near six-year highs versus the Australian and New Zealand currencies, and commodities were set to cap a second weekly drop, as receding concerns over crises in Greece and China put the spotlight back on U.S. interest rates.
The Aussie dollar bought 74.16 U.S. cents as of 11:05 a.m. in Tokyo, while the kiwi traded at 65.33 U.S. cents. The Bloomberg Dollar Spot Index has added 1.3 percent this week, the most since May, undermining the price of raw materials amid renewed chatter over the timing of the Federal Reserve’s liftoff. The MSCI Asia Pacific Index is set for a weekly advance, while Standard & Poor’s 500 Index futures were little changed. Brent oil has slipped 2.7 percent since July 10.
With inflation data due Friday, Fed Chair Janet Yellen reiterated during Congressional testimony that she intends to increase borrowing costs this year. The dollar is up against all G10 currencies in July. A global equity gauge is set for its first weekly advance this month amid signs Greece may find a way out of its immediate crisis and as Chinese markets slowed their precipitous decline.