The dollar rose on Friday as remarks by Federal Reserve policymakers helped boost investor expectations of a near-term increase in U.S. interest rates.
Boston Fed President Eric Rosengren said in a speech on Friday that gradual interest rate increases might be in order with the U.S. economy at full employment and that low interest rates were increasing the chance of an overheated economy.
Rosengren's comments followed the announcement Thursday that U.S. Fed Governor Lael Brainard would give a speech on Monday.
Brainard is considered one of the Fed's more dovish members, meaning she is more inclined to leave rates lower in order to strengthen employment. The announcement of her speech likely means she will deliver the message that the Fed is close to raising rates, analysts said, suggesting there may be consensus on the rate-setting Federal Open Market Committee (FOMC) to do so.