The dollar held near two-month highs on Friday and looked set for a second straight weekly gain, as the market awaited U.S. gross domestic product numbers for the second quarter.
The dollar's gains were also helped by widening yield differentials between U.S. and German debt. Spread were also holding at two-month highs at 244 bps.
Investors were disappointed by lack of policy action from the European Central Bank at a policy meeting on Thursday. Their attention will now shift to a Federal Reserve meeting next week, where policymakers are expected to cut interest rates by a quarter point.
Second-quarter growth figures for the United States due later on Friday will provide a backdrop for the Fed meeting. Expectations are for a 1.8% expansion in U.S. GDP, compared with 3.1% in the first quarter.
Against a basket of its rivals, the dollar rose 0.1% at 97.88, just shy of a two-month high of 97.92 in the previous session.
Source : Reuters