Dollar Ends Week At Highest Since 2012 Versus Euro

Washington (Sept 26)   The dollar continued its assault on the euro Friday, surging to its highest since  November 2012  amid expectations that monetary policy in the US and  Europe  will diverge.

Today's economic data from the US raised expectations the Federal Reserve will raise interest rates ahead of schedule next Spring.

A report from the  US Commerce Department  said the US economy grew at an annual pace of 4.6% in the second quarter, compared to the previously reported 4.2% growth.

Meanwhile the  European Central Bank  will likely announce further stimulus to stoke inflation and jump-start the sluggish euro zone economy.

A survey by market research group GfK showed that German consumer sentiment is set to deteriorate in October on continued geopolitical tensions.

The dollar rose to  USD1.2680  versus the euro, having gained about  10 cents  since April.

Gradual gains over the course of the last three sessions took the dollar to  USD1.6250  versus the sterling. The buck has edged back toward 10-month highs near  USD1.61  despite hawkish remarks from  Bank of England Gov  .  Mark Carney  , who hinted that an interest rate hike is imminent.

The dollar is on the verge of a new 6-year peak against the yen. The pair was holding at  Y109.40  , a whisker from the dollar's highest levels since 2008.

Source:  Alliance