Dollar Gains on Iran Deal Fears, Interest Rate Hopes

The US dollar continued its upward trend against major currencies on Friday, buoyed by concerns over an Iran peace deal and potential interest rate hikes in the United States.

The greenback rose to 158.505 yen in Asian morning trade after gaining 0.4 percent the previous day, putting it on track for a 0.7 percent weekly gain. It had fallen to a 13-week low of 155.20 yen earlier this week following joint Japan-US intervention.

The dollar also strengthened against the euro, reaching $1.1521 after rising 0.3 percent in the prior session.

Analysts pointed to higher Treasury yields and a Financial Times report citing sources close to Federal Reserve Chair Kevin Warsh as factors supporting the dollar's rise. The report suggested that Warsh was open to a September interest rate hike if inflation data is strong, although Commonwealth Bank of Australia economist Kristina Clifton noted that the Fed may wait until December before starting a tightening cycle.