Dollar gains against the euro

THE dollar posted its biggest weekly gain against the euro since November, and rose versus the yen, on renewed speculation the Federal Reserve will boost interest rates twice more this year.

The Fed has raised rates 14 times since June 2004, to 4.5%, and sets borrowing costs next on March 28. After Fed Chairman Ben Bernanke said this week the US economic outlook is “positive”, traders increased bets policy makers will lift the benchmark to 5% within two months.

“It’s reasonably clear that the dollar should trade up provided we don’t have a fundamental change’ in Fed policy, said Jason Bonanca, a currency strategist at Credit Suisse in New York.