Euro Extends Gains Against Dollar, Eyes Fourth Straight Weekly Advance
The euro continued its upward trend on Friday, extending its gains against the US dollar for a third consecutive session and moving closer to a three-month high. The single currency is now on track for a fourth straight weekly gain, supported by the US Treasury's intervention in the bond market to curb long-term yields.
Investors are awaiting August business activity reports from Europe later on Friday to reassess expectations for a potential European Central Bank interest rate hike in September. A stronger-than-expected report could increase the likelihood of a rate hike, providing further support for the euro.
The US Treasury Secretary Scott Bessent reiterated that the Treasury is prepared to increase its purchases of US government securities as part of efforts to support liquidity and ease strains in the debt market. The US Dollar Index fell over 0.1% on Friday, moving closer to its lowest level in three months.