The dollar is set for its strongest week since early August as resilient US data forced traders to reassess the Federal Reserve’s scope for interest-rate cuts, with attention turning to Friday’s inflation report.
The Bloomberg Dollar Spot Index traded little changed after hitting a three-week high on Thursday, leaving it up more than 0.7% in the past five days. The yield on policy-sensitive two-year Treasuries is poised for its biggest weekly advance since early July.