The dollar was set for its biggest weekly advance against major peers in two months before Federal Reserve Bank of Richmond President Jeffrey Lacker speaks today.
The greenback rose versus most of its 16 main counterparts as U.S. data on retail sales, New York manufacturing and initial jobless claims released this week all beat economists estimates, bolstering bets the Fed will continue to reduce monetary stimulus. The yen’s losses were limited versus the greenback after U.S. Treasury Secretary Jacob J. Lew said Japan can’t rely on the exchange rate for economic advantage.
“The Fed will not slow the pace of tapering,” said Yuki Sakasai, a currency strategist at Barclays Plc. in New York. “The dollar is being bought back on the week. I don’t think it will fall much further.”
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