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Dollar Rises to 5-Year High on Fed Rate Outlook; Yen Declines

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The dollar advanced to a five-year high against a basket of currencies with the Federal Reserve suggesting this week that policy makers may raise interest rates next year as the U.S. economy accelerates.

The greenback is headed for gains against all except one of its 31 major counterparts this year, a feat it hasn’t accomplished since 1997. San Francisco Fed President John Williams said June will be the right time to consider when to increase borrowing costs. The yen fell to a more than one-week low against the greenback after the Bank of Japan maintained unprecedented monetary stimulus. The euro slid for a third day and a gauge of Asian currencies fell.