U.S. Dollar Rallies to Three Week High

The U.S. dollar hit a near-three-week peak on Thursday, driven higher by sentiment that U.S. interest rates inevitably will rise, with the prospect of a June increase still in the mix despite spotty economic data.

Interest rate differentials between benchmark U.S. and German 10-year government bonds widened to 1.771 percent on Thursday, their biggest spread since March 26.  The euro fell to its lowest level since March 19, trading off 1.34 percent to $1.06370 on the EBS trading platform.

The greenback climbed 1.28 percent to 0.9790 Swiss francs, a near three-week high. The dollar gained 0.42 percent to 120.74 yen, its best level since March 20. Sterling fell 1.24 percent to $1.4680, a three-week low.


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