Dollar posts best week in 15 months amid volatility

New York

THE dollar rose on Friday for its strongest week against a basket of currencies in nearly 15 months as some traders piled into the greenback in a week of tremendous swings felt in stock and bond markets around the world.

The US currency recovered further from a three-year low set two weeks ago. Some traders have bought it to close out their bets on its weakness, while others favoured the dollar in a safe-haven move over higher-return but riskier currencies, analysts said.

"Overall, it's just a highly volatile environment where the idiosyncratic things that drive (the market) - fundamentals, economic data - are taking second stage ... Everything is becoming much more correlated in a very volatile environment," said Boris Schlossberg, managing director of FX strategy at BK Asset Manage…