Dollar Rises to 5-Year High on Economic Growth; Real Declines

A gauge of the dollar climbed to a five-year high after the economy expanded at the fastest pace in more than a decade, supporting the case for the Federal Reserve to raise interest rates.

The greenback advanced for a fifth day against the yen as consumer spending accelerated more than estimated. Traders see a 68 percent chance the Fed will raise borrowing costs by September, fed-funds futures data compiled by Bloomberg show. Brazil’s real dragged an emerging-markets index lower as the Fed moves closer to ending easy-money policies. The euro fell to a two-year low on bets Greece is headed for early elections.