Dollar set for best two-week stretch in six months

dollar: The U.S. dollar is the world’s primary reserve currency and is traded globally as a benchmark for foreign-exchange markets, commodities, and international finance. In the reported development, the dollar is advancing toward its strongest two-week performance in six months as expectations of further Federal Reserve tightening, solid U.S. economic activity, and higher Treasury yields improve its outlook. Monetary policy: The Federal Reserve recently raised interest rates and signaled that additional tightening could follow, strengthening support for the dollar. Economic backdrop: Recent U.S. business-activity data showed firm growth, reinforcing expectations that higher interest rates may persist. Market positioning: Currency strategists and asset managers expect the dollar’s rally to remain supportive through the rest of the year, although speculative bullish positioning had previously been reduced.