The dollar reached its high points for several months against the euro and sterling today, boosted by a positive outlook for the US economy amid expectations of further interest rate hikes.
The euro closed at $1.19 today, the lowest level since May 2004. Sterling struck $1.7574 - the lowest point for 13 months - on the prospect that the Bank of England could cut interest rates as early as Thursday.
Robust US economic data on Friday added to positive sentiment towards the US economy a day after the Federal Reserve raised interest rates to 3.25% - the ninth consecutive quarter-point hike.
A better than expected survey of US manufacturing and a strong consumer sentiment report helped assuage any concerns that the Fed might have to pause in raising interest rates.
