US$ nears 2-month high on rate hike expectations

London

THE US dollar edged towards a two-month high against a basket of currencies on Tuesday and was on track for its strongest month in six, as expectations grew that US interest rates will rise in the coming months.

Against the yen, the US dollar was heading for its best month in 1½ years. It has gained more than 4 per cent since early May after Japanese officials warned several times that they would intervene to weaken the currency.