The dollar index rose to a more than four-month high on Friday as positive U.S. data and weak readings from overseas prompted investors to re-evaluate the likelihood of a rate increase from the U.S. Federal Reserve while other central banks are seen cutting rates or adding stimulus.
The rise gave the index, which measures the greenback against six major world currencies, its fifth straight weekly gain. The dollar index rose 0.5 percent, touching a high of 97.487, its highest since March 10.
The returning prospect of monetary policy divergence between the Fed and its global peers has buoyed the dollar in recent weeks. As a result, speculators boosted their net long U.S. dollar position this week, to the highest since early June.
The value of the dollar's net long position increased to $10.42 billion in the week ended July 19 from $8.01 billion the previous week, according to Reuters calculations and data from the Commodity Futures Trading Commission released on Friday.
Speculators also raised sterling net shorts to 74,386 contracts in the latest week, the highest since June 2013, data showed.