Friday, March 25, 2005 | 10:16 a.m.
The dollar headed for its biggest winning week in 11 against both the euro and the yen in Asia on speculation signs of accelerating U.S. inflation will force the Federal Reserve to raise interest rates in larger increments.
The Fed this week increased borrowing costs for a seventh straight time by a quarter point amid government reports showing rising consumer and wholesale prices. The yield on 10-year U.S. Treasury notes rose 0.2 percentage point this month to the highest since June, adding to the attractiveness of the nation's assets.
"The dollar's upward trend is going to continue," said Toru Umemoto, market analyst in Tokyo at Keio University's Global Security Research Center. "Yields are rising, and the U.S. economy is strengthening. All of this is dollar supportive."
Against the euro, the dollar traded at $1.2940 at 11:30 a.m. in Tokyo, from $1.2940 late Thursday in New York.
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