US$ hits 2-month high on expected rate hike

London

THE US dollar hit a two-month high against a basket of currencies on Wednesday on expectations the Federal Reserve is on course to raise interest rates in the coming months.

The euro, though, held its ground and rose against the yen on relief that there was progress in Greek bailout talks. Eurozone finance ministers early on Wednesday gave a nod to releasing 10.3 billion euros (S$15.8 billion) in new funds for Greece in recognition of painful fiscal reforms pushed through by Prime Minister Alexis Tsipras's leftist-led coalition The US dollar index was at 95.616 after rising as high as 95.661 earlier in the Asian session, its highest since late March. The index has risen nearly 3 per cent this month.