The dollar climbed for a fifth straight day against a basket of major currencies, on track for its best streak in almost a year, as investors priced in the possibility of two U.S. interest-rate hikes this year from the Federal Reserve.
St Louis Fed President James Bullard said Thursday in prepared remarks that another U.S. interest rate hike "may not be far off."
Bullard's comments followed similar remarks Wednesday in which he said that a rate hike could come as soon as next month. That was in line with similarly hawkish comments from other U.S. policymakers earlier in the week.
"Hawkish Fed talk this week has caught a market that has largely underestimated the risk of U.S. rate rises, while lighter, pre-holiday trade seems to be enhancing the dollar's resurgence," said Western Union Business Solutions senior market analyst Joe Manimbo in a note to clients.