The US dollar rose against a basket of its major peers after better-than-expected US economic data forced investors to reconsider the assumption that the Federal Reserve would pause interest rate hikes.
The US economy expanded faster than predicted in the second quarter, thanks to the labor market’s strength, which boosted consumer spending.
The dollar index, which tracks the currency against six major peers, rose 0.682% to 101,770.
The European Central Bank raised its deposit rate to a historic high on Thursday and kept its options open on whether further increases are needed to bring down inflation.
The Fed hiked interest rates by a quarter percentage point, as predicted, marking the 11th rate hike in the previous 12 meetings.
Fed Chairman Jerome Powell left open the possibility of another hike in September.
