Buoyant dollar on course for its longest weekly winning streak since 2014
By Rae Wee
SINGAPORE (Reuters) — The dollar was headed for its longest weekly winning streak in nine years on Friday, bolstered by a resilient run of U.S. economic data that has also put the end of the Federal Reserve's rate-hike cycle into question.
In Asia, traders were keenly watching moves in the Chinese currency, after the onshore yuan tumbled to a 16-year low in the previous session.
The U.S. dollar index, which measures the greenback against its major peers, steadied at 105.02 in early trade, not far from the previous session's six-month high of 105.15.
The index was on track to extend its gains into an eighth straight week, and is up 0.7% so far.
The euro, the largest component in the dollar index, was staring at eight straight weeks of losses, with the single currency last marginally higher at $1.0701, after having fallen to a three-month low of $1.0686 on Thursday.
«This week's story was very much about the resilience we've seen in the data… the market's psychology is that things just look so much better in the U.S. than they do elsewhere in the world,» said Ray Attrill, head of FX strategy at National Australia Bank (OTC:NABZY).
Data out this week showed the U.S. services sector unexpectedly gained steam in August and that jobless claims hit their lowest level since February last week, while in the euro zone, industrial production in Germany, Europe's largest economy fell by slightly more than expected in July.
«Comparing the current growth fundamentals of Europe and the U.S., the U.S. still looks superior,» said Attrill.
Sterling similarly languished near Thursday's three-month low and last bought $1.2484, set to clock a weekly loss of more than 0.8%.
IN THE DOLDRUMS
The offshore yuan edged 0.05% higher to
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