The U.S. dollar is strengthening against the euro, the yen and the pound sterling in trading on Friday.
The ICE-calculated index showing the dollar’s dynamics against six currencies (euro, Swiss franc, yen, Canadian dollar, pound sterling and Swedish krona) is adding 0.16%, while the broader WSJ Dollar Index is up 0.18%.
The euro/dollar pair is trading at $1.0722 as of 7:50 a.m., up from $1.0743 at the close of the previous session.
The pound is at $1.2097, compared to $1.2121 the day before.
The dollar went up to 131.74 yen against 131.54 yen at the close of trading on Thursday.
Signals that the Federal Reserve (Fed) may raise the benchmark interest rate higher than the market expects provided support for the American currency. Several Fed policymakers this week signaled they believe a further rate hike is necessary because the fight against high inflation has not yet been won and there is no significant slowdown in economic growth.
Next week, the January U.S. inflation data will be released. The consensus forecast from experts cited by Trading Economics suggests consumer prices are up 0.5% from December, when they fell 0.1%.
The Australian dollar fell in trading Friday to $0.6924 from $0.6937.
The Reserve Bank of Australia (RBA) raised its forecast for core inflation, which excludes food and energy costs, for the current fiscal year ending in June to 6.25% from 5.5%.
