Dollar Index Gains for 3rd Day as Fed Policy Shift Spurs Demand
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The Dollar Index rose for a third day, surging after Federal Reserve Chairman Ben S. Bernanke made the case for reducing stimulus as the economy improves, sparking declines in emerging-market assets and commodities.
The U.S. currency is poised for its biggest weekly gain versus the yen in two months before reports next week that economists said will show U.S. home prices and durable-goods orders increased. Norway’s krone extended the largest weekly decline in 4 1/2 years as central bank Governor Oeystein Olsen said policy makers were aware they would trigger a slump by lowering their interest-rate outlook while Sweden’s currency fell against all 16 of its most-traded counterparts.