New York--The dollar resumed its relentless surge higher Friday after a breather the prior day, hitting a 12-year high against the euro as traders awaited a key Federal Reserve meeting.
The dollar has been on a tear, lifted by expectations of a Fed hike of near-zero interest rates some time this year, a sharp contrast to a rash of rate cuts and stimulus by other central banks.
The euro has lost more than 13 percent of its value against the greenback so far this year. It encountered a particularly tough patch this week after the European Central Bank on Monday launched a 1.1 trillion euro bond-purchase program to try to revive growth in the 19-nation currency bloc.
The euro fetched less than $1.05 Friday, falling at one point as low as $1.0466, its weakest level since January 2003.
"The big event everyone is waiting for is Wednesday's announcement from the Federal Reserve at which policymakers may set the stage for an eventual rate hike," said Joe Manimbo, an analyst at Western Union Business Solutions.
Many analysts expect the Federal Open Market Committee, meeting Tuesday and Wednesday, will remove the "patient" language from its statement. Strong February jobs growth brought the unemployment rate down to 5.5 percent, its lowest level since May 2008 and near what the central bank considers full employment.
"The Fed is expected to alter its forward guidance language so as to allow the Committee the flexibility to raise interest rates sometime around the middle of this year, possibly as early as June," Deutsche Bank said in a research note.
2100 GMT Friday Thursday
EUR/USD 1.0489 1.0636
EUR/JPY 127.38 129.00
EUR/CHF 1.0542 1.0660
EUR/GBP 0.7115 0.7147
USD/JPY 121.44 121.29
USD/CHF 1.0051 1.0023
GBP/USD 1.4742 1.4882
AFP
