Dollar maintains its gains, amid bets on stopping interest rate hikes

The dollar remained close to a peak of more than a week on Friday after a slew of data released overnight indicated a slowdown in the US economy, as investors bet the Federal Reserve would halt interest rate increases.

The dollar index, which measures the performance of the US currency against six major currencies, fell 0.059 percent to 102.02, remaining close to the level of 102.15 it touched overnight, the highest since May 2nd. The index is set to end a two-week losing streak, rising 0.7% this week.

The number of Americans filing new applications for unemployment benefits last week jumped to the highest level in a year and a half, pointing to cracks in the labor market as demand slowed, according to data released on Thursday that also showed a slight rebound in producer prices in April.

The reports came in line with the expectation of most economists of a recession by the end of the year.

Federal Reserve policymakers have about five more weeks of data to analyze before their next meeting, and they said they plan to scrutinize it carefully before making a decision.

Meanwhile, the euro rose 0.03 percent to 1.0917 dollars, and the Japanese yen rose 0.03 percent to 134.53 dollars.

The Australian dollar fell 0.01% to $0.670, while its New Zealand counterpart fell 0.24% to $0.628.

And the pound sterling recorded $ 1.2512 in the latest transactions, up 0.02 percent during the day, after declining 0.6 percent on Thursday.

The Bank of England raised its main interest rate a quarter of a percentage point to 4.5 percent on Thursday, and Governor Andrew Bailey said the Bank of England would “stay on track” as it seeks to rein in inflation, which has been the fastest among major economies.