Moreover, expectations that the U.S. President-elect Donald Trump would help U.S. economic growth with stimulus measures also supported the rise in the dollar.
Nevertheless, the slight pullback in the U.S. dollar on Friday suggested that traders were taking profits ahead of the weekend and expectations of a squeeze on dollar liquidity toward the end of the year.
“We’re probably starting to thin out for the holidays as well, so there are some people taking some profits,” Win Thin, global head of emerging market currency strategy at Brown Brothers Harriman, told Reuters.
For more information on the greenback, visit our U.S. dollar category.