Dollar records limited gains as euro surges

The dollar rose on Friday morning in Asia but hovered close to its lowest rate in a month. The euro’s gains over investors’ interest rate hike expectations limited the dollar’s buildup.

The U.S. Dollar Index that measures the greenback against other major currencies nudged 0.07% higher to 93.388 by 12:16 AM ET (4:16 AM GMT).

The USD/JPY pair jumped 0.07% to 113.64.

The AUD/USD pair climbed 0.11% to 0.7552, while the NZD/USD pair fell 0.15% to 0.7188.

The USD/CNY pair shed 0.01% to 6.3910, while the GBP/USD pair surged 0.07% to 1.3798.

The euro traded at $1.16855 after touching $1.1692 for the first time since September 28.

European Central Bank (ECB) President Christine Lagarde announced on Thursday that the central bank will lessen its bond-buying program in the first quarter of 2022 but with no interest rate hikes.

The Bank of Canada and the Bank of Japan also announced their policy decisions earlier this week, causing significant volatility in the foreign exchange markets.

The Federal Reserve and the Bank of England (BOE) will announce their policy setting next week.