U.S. Dollar Higher on Growth and Rate Prospects

The dollar rose to its highest level this week on Thursday as news of faster U.S. economic expansion in the second quarter supported the notion that the U.S. Federal Reserve would raise interest rates, perhaps as early as September.

The government’s first assessment of gross domestic product growth in the second quarter was 2.3 percent, swifter than the revised 0.6 percent pace in the first quarter but lower than the consensus 2.6 percent rate forecast of analysts polled by Reuters.

The latest GDP data followed the Federal Reserve’s statement on Wednesday, which some traders saw as bullish for the greenback. Fed policymakers said they felt the economy had overcome a first-quarter slowdown and was expanding moderately, and nodded to “solid job gains” in recent months. That left the door open for a possible rate hike when policymakers next meet in September.