Dollar steadies at 20-year highs, on track for fresh weekly gains

Dollar fell in European trade on active profit-taking away from 20-year highs amid strong bets on multiple Fed rate hikes this year.

The dollar is still heading for the sixth weekly profit in a row amid strong haven demand.

The Dollar Index

The dollar index fell 0.3% on Friday to 104.48, after closing up 0.75% yesterday, the sixth profit in a row, with a 20-year high at 104.92.

The dollar index is up 0.8% so far this week on track for the sixth weekly profit in a row, the longest such streak this year.

US inflation data astounded expectations once more and paved the way for a rate hike next month.

Bullish remarks by Fed officials have all but guaranteed several 0.50% rate hikes this year.

Estimates

Now analysts expect the dollar to hit fresh 20-year highs after the current correction takes its course for profit-taking.