The dollar hit an 8-year high against the mark Friday and surged in most other currency dealings, powered by vibrant U.S. economic data that raised the prospect of higher interest rates.
The advances in employment, incomes, spending and manufacturing all suggested previously unforeseen inflationary pressures that could persuade Federal Reserve policymakers to nudge up rates at their August meeting. Higher rates tend to strengthen a currency.
Traders said the power of the dollar’s advance against the mark increased during the day, as those who had sold dollars on a bet the currency would retreat scrambled to buy them back.
Other late-dollar rates: 1.5270 Swiss francs, up from 1.5113; 6.2795 French francs.
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