Dollar heads for second weekly gain as euro, yen hit lows

The U.S. dollar strengthened in global foreign‑exchange markets and was on track to post its second consecutive weekly gain, supported by renewed demand for the greenback. Investors have been reassessing the outlook for U.S. interest rates, which has helped the dollar outperform several major currencies.

The dollar index held firm during the week, while the euro and Japanese yen remained under pressure. The euro hovered near multi‑month lows against the dollar, and the yen also traded close to its weakest levels in months. Analysts say elevated U.S. Treasury yields and expectations that the Federal Reserve will not rush to cut interest rates have provided support for the U.S. currency.

Market participants are closely watching incoming U.S. economic data for further clues about the Federal Reserve’s policy path. Key indicators such as inflation readings and labor‑market data are expected to shape expectations about the timing and scale of potential rate cuts.

Meanwhile, relatively weaker economic momentum in Europe and Japan has also weighed on their currencies. This divergence in economic outlooks has encouraged investors to maintain strong demand for the dollar, keeping the euro and yen near recent lows in global currency markets.