US$ hits 8-week high against euro

London

THE US dollar strengthened across the board on Tuesday and hit an eight-week high against the euro as investors brought forward their bets on when the US Federal Reserve will raise interest rates again.

The biggest loser among currencies in developed markets was the Australian dollar, which slid by more than one per cent to its weakest since early March. In contrast to hawkish comments from the Fed, the Reserve Bank of Australia fuelled speculation overnight that interest rates will be cut again. Helped by its gains against the euro, the US dollar hit its strongest in eight weeks against a basket of major currencies. It was 0.4 per cent higher against the European single currency at US$1.11685.