Investing.com - The dollar continued to hover at 14-year highs against the other majors currencies on Friday, amid sustained optimism over the strength of the U.S. economy and growing expectations for a December rate hike by the Federal Reserve.
EUR/USD slipped 0.24% to 1.0599, just off an 11-month trough of 1.0582 hit earlier in the session.
The greenback remained broadly supported after strong U.S. initial jobless claims and inflation data on Thursday fueled further expectations for a rate hike at the Fed’s December policy meeting.
In addition, Fed Chair Janet Yellen said in testimony to Congress that an increase in interest rates could be "appropriate relatively soon".
On Friday, Kansas City Federal Reserve Bank President Esther George said that while she supports raising interest rates, the U.S. central bank must do so only gradually.
Meanwhile, the euro weakened after European Central Bank President Mario Draghi said earlier Friday that the central bank will continue to act as warranted using all instruments available.
Speaking at the 26th European Banking Congress, in Frankfurt, Draghi added that the euro zone’s economic recovery still relies to a considerable degree on accommodative monetary policy.
Elsewhere, GBP/USD declined 0.66% to 1.2337.
USD/JPY gained 0.32% to a five-month high of 110.47, while USD/CHF rose 0.26% to 1.0098.
The Australian dollar remained weaker, but AUD/USD down 0.62% at 0.7360, while NZD/USD added 0.16% to 0.7037.
Meanwhile, USD/CAD held steady at 1.3526.
Statistics Canada reported on Friday that the consumer price index gained 0.2% in October, in line with expectations. Year-on-year, consumer prices advanced 1.5% last month.
Core CPI, which excludes food and energy, rose by 0.2% in October, in line with expectations.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.47% at a 14-year peak of 101.47.