Dollar climbs ahead of expected Fed rate increase

London

THE dollar climbed on Tuesday ahead of an expected interest rate rise by the US Federal Reserve, as political risks from Dutch and French elections to Britain's exit from the European Union (EU) weighed on European currencies.

The dollar index, which measures the greenback against a basket of six major peers - four of them European - climbed by a third of a per cent to 101.67. The euro, which on Monday hit a five-week high above US$1.07 on the expectation that the European Central Bank (ECB) is moving towards winding back its stimulus programme, inched down to US$1.0644, with dovish comments from ECB officials adding to a cautious mood.