The dollar nudged higher on Friday, and stayed on track for a weekly gain despite trading shy of this week's highs, as forex investors await US retail sales data and comments from Federal Reserve policymakers that could cement expectations of a US interest rate hike this year.
The dollar index was up around 0.3 percent to 97.812. That was below a seven-month high of 98.129 hit on Thursday, but still up 1 percent for the week, and more than 2 percent for the month so far. Advance retail sales data could offer some insight on the strength of consumption.
Later today, Fed Chair Janet Yellen will address a Boston Fed economics conference, at which Boston Fed governor Eric Rosengren will also speak. The minutes from the last Fed meeting from September, released on Wednesday, prompted investors to raise their bets of a Fed rate increase at its December FOMC meeting. Market participants are now pricing in around a 70 percent chance that the Fed will move.
USD/JPY rose half a percentage point to 104.27, shy of its overnight high of 104.62, which was its strongest level since late July. It is up more than 1.1 percent for the week.
EUR/USD slipped back towards 1.1000, edging back toward its overnight low of 1.0982, its lowest level since late July. while Sterling skidded another 0.5 percent to 1.2165 and looked set for a loss of almost 2 percent in a volatile week in which it moved back towards the previous week's 31-year lows.
