LONDON—The dollar consolidated near a two-decade high on Friday as traders flirted with the prospect of a 100 basis point rate hike by the Federal Reserve later this month, while the euro was pinned near parity.
Currencies perceived as riskier, including the Aussie and the pound, were under pressure as a barrage of negative news over the last 24 hours weighed on sentiment.
Against a basket of its rivals, the dollar rose to its highest levels since September 2002 above 109 before edging back to trade at 108.3, down 0.2 percent on the day.
The U.S. banking earnings season kicked off on a weak note, China’s growth in the second quarter tanked more than expected, Italy faced a new political crisis and Fed officials signaled no let up on their hawkish policy stance….