US$ climbs towards 7-month high

London

THE dollar inched up towards a seven-month peak against a basket of major currencies on Tuesday, bolstered by widening rate differentials in favour of US Treasuries on expectations that the Federal Reserve will raise interest rates next month.

The dollar index rose 0.1 per cent to 99.072, moving back towards Friday's peak of 99.345, a high not seen since mid-April. Against the yen, the dollar was buying 123.35 yen , up 0.2 per cent on the day and not far from the previous day's 2½ month high of 123.60.