NEW YORK: The dollar Friday continued its upward lurch after Wednesday's US Federal Reserve meeting added to expectations that the US central bank will raise interest rates before other central banks.
The greenback has been trending higher against the euro, the yen and other currencies since the Fed kept interest rates low and said the US central bank would be "patient in beginning to normalize the stance of monetary policy."
While the Fed did not accelerate the timing to raise interest rates, currency traders are betting the US will normalize policy more quickly than its counterparts.
On Friday, David Song, currency analyst at DailyFX, said the dollar was well-positioned to gain on the British pound because "market participants see the Federal Open Market Committee normalizing monetary policy ahead of the Bank of England."
The US central bank "remains on course to remove the zero-interest rate policy in mid-2015, while its UK counterpart may further delay its rate hike," Song added.
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