Dollar towers at two-decade high on growth woes, Fed outlook - SABC News - Breaking news, special reports, world, business, sport coverage of all South African current events. Africa's news leader.

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The dollar held firm at a 20-year high on Friday and was poised to score its best monthly gain in a decade, buoyed by bets on rising US interest rates and doubts about growth in Europe and China.

The latest uptick was thanks to the Bank of Japan, which sent the yen falling through 130-per-dollar for the first time since 2002 on Thursday when it reinforced a commitment to its super-low yield policy.

The US dollar index, which hit a two-decade high of 103.93 in the wake of the yen’s tumble, was last at 103.53 and up more than 5.3% through April.Weaker-than-expected quarterly US growth data overnight proved little obstacle to the dollar’s rise, and investors hardly adjusted their near-term interest rate bets.

“Market participants increasingly price in a widening divergence opening up between the performance of the euro-zone and US economies and subsequently the outlook for European Central Bank and Fed policies.”

 

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