LONDON—The dollar index rose to seven-week highs on Friday, as investors prepared for U.S. interest rates to stay higher for longer after a set of strong U.S. economic data.
The yen fell after a volatile Asian trading session, with incoming Bank of Japan Governor Kazuo Ueda saying it was appropriate to keep ultra-loose monetary policy.
Strong U.S. jobs data and rhetoric from Federal Reserve officials this month about openness to higher rates if needed in the fight against inflation have resulted in the dollar erasing its year-to-date losses.
The dollar index—which measures the U.S. currency against six others—was 0.2 percent higher at 104.80, its highest since Jan. 6. It was set for a fourth-straight weekly gain, having risen 2.5 percent this month….