The US dollar rallied the most in two months after a series of better-than-forecast economic reports boosted the outlook for US growth.
The greenback rose for a third day versus the yen, its longest winning streak in almost a month, as a revised reading of GDP last quarter showed the economy grew at a 1 percent annualized rate, compared with an initial estimate of 0.7 percent.
Consumer purchases climbed last month by the most in eight months and a measure of inflation advanced the most since October 2014.
The reports helped offset a rising clamor of concern that US growth risks being dragged down by China’s slowdown and stagnant inflation in the eurozone and Japan.
Traders have pushed out expectations for interest-rate increases from the US Federal Reserve as a result, and a Bloomberg gauge of the dollar remains poised for its biggest monthly loss since April last year.
Hedge funds cut their bets on the dollar to the least since July 2014 in the week through Feb. 23.
The Bloomberg Dollar Spot Index, which tracks the US currency versus 10 peers, rose 0.7 percent to 1,231.01 as of 5pm in New York, the biggest gain since Dec. 17 last year.
The dollar advanced 0.9 percent to ¥114, capping its best week since the period ending Jan. 29. The greenback added 0.8 percent to US$1.0934 per euro.
The Fed is scrutinizing incoming data for signs the economy can withstand another interest-rate increase after policymakers hiked rates for the first time in almost a decade in December last year.
The US dollar fell against the New Taiwan dollar on Friday, shedding NT$0.004 to close at NT$33.492 as the strength of other regional currencies led traders here to buy into the local unit, dealers said.
Strong buying by foreign investors in Taiwan’s stock market and seasonal fund demand from Taiwanese exporters added downward pressure on the US dollar before the central bank stepped in and helped the greenback recoup most of its earlier losses, they said.
The ringgit and the won gained 0.24 percent against the US currency, while the Indonesian rupiah jumped 0.22 percent. The Singapore dollar and Philippine peso also booked healthy gains.
The British pound was the biggest casualty of the first week of the UK’s EU referendum campaign. The pound’s 3.8 percent drop over the week brought it to US$1.3864 as of 5:15pm on Friday in London. It reached US$1.3854, the lowest level since March 18, 2009.
Additional reporting by agencies
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