the u.s. dollar extended its rally for a 10th consecutive session friday, remaining at its highest level since 2003 as investors bet on u.s. growth and higher interest rates. the ice dollar index, which measures the dollar against six other currencies, was up 0.4% to 101.32. the dollar rose against the japanese yen, british pound and most emerging-market currencies. the dollar has soared since the nov. 8 u.s. presidential election, as investors expect that president-elect donald trump <u+2019>s proposals to boost fiscal spending and cut taxes will propel u.s. growth and inflation. meanwhile, the federal reserve is moving closer to raising u.s. interest rates. on thursday, fed chairwoman janet yellen said the fed could act <u+201c>relatively soon.<u+201d> upbeat comments friday from new york fed president william dudley and dallas fed president robert kaplan added to investors<u+2019> optimism for higher rates. fed-funds futures, a popular tool for traders to bet on u.s. interest-rate policy, shows a 95% probability that the fed lifts rates at its meeting next month, according to data from cme group . that<u+2019>s up from 91% thursday. higher rates typically boost the dollar by making the currency more attractive to yield-seeking investors. the dollar<u+2019>s strength has weighed on emerging-market nations. many developing nations have borrowed heavily in dollars, and that debt becomes more expensive when the dollar rises. rising u.s. rates also make emerging-market assets less attractive to yield-seeking investors. emerging-market currencies continued their selloff friday despite intervention by several central banks. the dollar recently rose 1% against the mexican peso, 0.5% against the taiwan dollar and 0.2% against the indian rupee. write to chelsey dulaney at chelsey.dulaney@wsj.com
dollar rallies for a 10th day - wsj
chelsey dulaney