”It brings the monetary policy divergence theme back into play, which is supportive for the dollar,’’ Paresh Upadhyaya, portfolio manager at Pioneer Investments, told the Wall Street Journal.
The dollar also strengthened against many emerging market currencies. The actively managed WisdomTree Bloomberg U.S. Dollar Bullish Fund (NYSEArca: USDU), which tracks the USD against a broader basket of developed and emerging market currencies, was up 0.8% Friday and was only down 0.9% year-to-date.
The dollar may have also found greater support from foreign investors as many global traders turned to the U.S. Treasuries. More international investors have piled in to the relatively attractive yields in U.S. government debt as foreign central bank policies have pushed international government yields to near zero or negative in some cases like Japan. [Treasury Bond ETFs Continue to Impress]
owerShares DB U.S. Dollar Index Bullish Fund
Max Chen contributed to this article.