Singapore, May 26 (BNA): The dollar fell on Friday but remained near a two-month high against its major peers, supported by expectations that US interest rates may remain high for longer.
The dollar moved away from a six-month high against the yen in Asian trading and last settled at 139.77, after reaching 140.23 yen in the previous session, the highest level since November, Reuters reported.
Against a basket of currencies, the US dollar fell 0.13% to 104.09, off Thursday’s two-month high of 104.31, according to the Associated Press.
However, the index was on track for a third consecutive weekly gain of more than 0.8%, as traders raised their expectations for how much higher prices would be in the US.
Money markets are now pricing in a 40% chance that the Fed will raise interest rates by 25 basis points at the policy meeting next month, while expectations that the Fed will start cutting rates later this year have been tempered.