Investing.com - The dollar held steady near one-and-a-half month highs against a basket of other major currencies on Friday, as growing expectations for a U.S. rate hike for the year end continued to support the greenback and as markets eyed a string of U.S. data due later in the day.
The dollar remained supported after Federal Reserve Chair Janet Yellen's two-day testimony before U.S. Congress left investors believing that interest rates will be raised later this year.
However, speaking to the Senate Banking Committee on Thursday, a day after appearing before the House Financial Services Committee, Yellen again avoided specifying exactly when the Fed is likely to start lifting its benchmark rate from near zero.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was steady at 97.73, close to Thursday's one-and-a-half month peak of 97.92.
EUR/USD edged up 0.10% to 1.0887 after euro zone ministers agreed on Thursday to give Greece a €7 billion bridging loan from a European Union-wide fund to keep its finances afloat until a bailout is approved.
The loan was expected to be confirmed on Friday by all EU member states.
The news came after the European Central Bank increased its emergency lending to Greek banks by €900 million and added that it is operating under the assumption that Greece will remain in the euro zone.
ECB President Mario Draghi said on Thursday that several positive things have happened to allow the increase in emergency liquidly assistance and that it now appeared that Greece would make the repayment and clear its arrears to the International Monetary Fund.
The pound was also higher, with GBP/USD up 0.10% at 1.5626.
Demand for sterling remained supported after Bank of England Governor Mark Carney said earlier in the week that the time for rate increases is moving closer.
He also reiterated that rate hikes when they do come will be gradual.
Elsewhere, the dollar was steady against the yen and the Swiss franc, with USD/JPY at three-week highs of 124.10 and with USD/CHF at 0.9578.
The Australian dollar was lower, with AUD/USD down 0.19% at 0.7391, while NZD/USD rose 0.39% to 0..6537, off Thursday's six-year lows of 0.6498
Meanwhile, USD/CAD edged up 0.11% to trade at 1.2972.