The U.S. dollar strengthened against most of its main rivals Friday in New York, as a popular gauge of the currency hit a fresh 2018 high, and as traders digested a week in which the Federal Reserve signaled that it may adopt a more measured approach to hiking interest rates even if inflation runs ahead of its 2% annual target.
An escalation of tensions between the U.S. and North Korea, which appeared to ease somewhat early in the session, and trade talks with Washington and Beijing contributed to a week marked by up-and-down trade.
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What are currencies doing?
The ICE U.S. Dollar Index DXY, +0.44% which gauges the U.S. unit against a half-dozen currencies, was up 0.5% at 94.197, headed for 0.6% return on the week. This will be its second straight weekly advance, putting it on track for a 2.6% rise so far in May, according to FactSet data. The gauge set an intraday high for 2018 at 94.2410, exceeding its previous peak for the year hit on Wednesday. A broader measure of the buck’s performance against 16 rivals, the WSJ Dollar Index BUXX, +0.32% rose 0.3% to 87.28. For the week, that gauge is up about 0.1%.
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The euro EURUSD, -0.5033% slipped against the buck at $1.1662, compared with $1.1722 late Thursday in New York. For the week, the euro is on track for a 0.9% drop against its U.S. rival, while it is looking at a loss of 3.5% for the month of May so far.
The British pound GBPUSD, -0.4933% weakened to $1.3316, compared with from $1.3379 in the previous session. For the week, sterling has shed 1.1%, while the currency is on course for a 3.3% drop for May at this point. Worries about inflation and...