The leading dollar index hit a seven-month high Friday, boosted by lingering U.S. economic optimism, even as global markets braced for the next round of trade jabs between economic powerhouses China and the U.S.
The still largely disparate interest-rate policy paths between the U.S. and Europe are setting up a test of the key $1.15 level for the euro-dollar exchange rate in the weeks ahead, many strategists have said. The euro was headed for its worst weekly loss in 19 months after the ECB this week signaled interest rates there would be left at record lows into at least mid-2019.
