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The dollar was headed for a third weekly gain in a row and stood near its highest levels for decades on the euro and yen on Friday, with investors in little mood for selling ahead of US labour data that could bolster the case for interest rate hikes.

Image: Reuters

It is up more than 1% in the week since Federal Reserve Chair Jerome Powell said at Jackson Hole, Wyoming that rates would need to be high “for sometime” to control inflation, somewhat surprising markets.It was last at $1.1552 after touching $1.1499 overnight. “We think US labour data would have to slow dramatically to deter a 75 basis point policy rate hike,” he said.

 

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