The U.S. dollar was higher on Friday, as investors turned their focus to the expected Federal Reserve rate increase next week, even as uncertainty over next year’s hikes kept gains in check.
The U.S. dollar index, which measures the greenback’s strength against a basket of six major currencies, rose 0.5% to 97.52 as of 5:20 AM ET (10:20 GMT).
The Fed meets for two days next week and is expected to increase rates, with a 79.2% chance priced in, according to Investing.com’s Fed Rate Monitor Tool.
The dollar was lower against the safe-heaven Japanese yen, with USD/JPY decreasing 0.07% to 113.53.
Meanwhile the pound was lower as Brexit woes continued, as it seems unlikely that May’s party will support her agreement with Brussels on leaving the European Union in March. GBP/USD inched up 0.04% to 1.2635.
The euro was pushed down by the stronger dollar, with EUR/USD falling 0.6% to 1.1291.