Investing.com - The firmer dollar rose to one-week highs against the euro on Thursday amid expectations for higher interest rates following remarks by Federal Reserve officials and minutes of the Fed’s latest policy meeting.
EUR/USD dipped 0.15% to 1.0762, the lowest level since April 2.
The dollar found support after New York Fed President William Dudley said Wednesday that the timing of a rate hike depends on economic data and added that a rate hike in June could still be possible if the labor market recovery remained strong.
Fed Governor Jerome Powell said he would be willing to start tightening policy despite current low levels of inflation, adding the Fed could act in June if economic data over the next two months showed that the recovery remained on track.
Meanwhile, Wednesday’s minutes of the Fed’s March meeting showed that several officials believe the economic outlook is likely to warrant an interest rate hike in June.
In the euro zone, data on Thursday showed that German industrial production rose 0.2% in February, ahead of expectations for a 0.1% gain as the production of energy and capital goods increased.
Another report showed that German exports rose 1.5% in February while imports also increased, pointing to growth in the region’s largest economy.
USD/JPY edged up 0.11% to 120.26, off Wednesday’s lows of 119.63.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, rose 0.20% to 98.45.