The dollar reached a one-week high versus the euro before the Federal Reserve releases minutes this week of its last meeting amid speculation it will bring forward the timing of interest-rate increases.
The Bloomberg Dollar Spot Index held its biggest weekly gain in six before Richmond Fed President Jeffrey Lacker and his Minneapolis counterpart Narayana Kocherlakota speak tomorrow. The pound climbed to a 22-month high versus the euro before a Bank of England policy meeting July 10. Australia’s currency fell against 13 of its 16 major peers as International Monetary Fund Managing Director Christine Lagarde signaled a cut in the institution’s global growth forecasts.
“What the market’s looking for is an indication that the FOMC debate is maybe getting a little bit more lively,” said Sam Tuck, an Auckland-based senior currency strategist at ANZ Bank New Zealand Ltd., referring to the Federal Open Market Committee. “Should we see that, obviously we’d expect the U.S. dollar to start strengthening a little bit more.”