Yet One More Week of Massive Gains for US Dollar

The US dollar continued to demonstrate an amazing performance this week, mainly due to the outlook for an early interest rate hike from the Federal Reserve. The currency posted especially big gains versus the euro and the Great Britain pound.

The dollar had stellar performance last week, and analysts predicted even more gains for this week. Their forecast proved to be correct after the US currency surged to new multi-year highs against the euro and the sterling. The greenback was unfazed by economic reports from the United States that were often disappointing.

The week was relatively light on news, but there were several unexpected interest rate cuts from the banks of emerging markets. Among them were banks of South Korea, Thailand and Russia.

EUR/USD sank from 1.0833 to 1.0491 over the week, falling 3.3 percent. GBP/USD tumbled from 1.5036 to 1.4733, demonstrating a drop by 2.1 percent. USD/JPY went up from 120.82 to 121.35.

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