Dollar on course for best week in months amid U.S. pandemic recovery

The dollar was on course for its best weekly rise in three months on Friday, boosted by increasing confidence that the U.S. economic recovery will outdo global peers.

The dollar index hit a new two-month high in Asian trade as traders await nonfarm payroll figures due later in the day. 

The index rose to 91.576 from Thursday, hitting 91.60 for the first time since December. The gauge rose every day this week and is on course for a 1.1% weekly advance.

The dollar was boosted by a surge in longer-term U.S. Treasury yields as traders prepared for massive fiscal spending. 

Democrats in the U.S. Senate aimed at overriding Republican opposition to Biden’s $1.9 trillion coronavirus relief package. 

The dollar steadied at 105.55 against the yen on Friday after hitting 105.70 for the first time since October 20. The euro was flat at $1.1966.