Dollar strengthens amid rate hike bets and geopolitical tensions. The U.S. currency gained ground Thursday as investors wagered the Federal Reserve would raise interest rates this year, supported by elevated Treasury yields and safe-haven demand. Rising inflation concerns added pressure, with producer prices posting their largest increase in four years and consumer prices climbing at the fastest pace in three years. The dollar index climbed to 98.46, up 0.63% for the week. Meanwhile, traders positioned ahead of Donald Trump's meeting with China's Xi Jinping in Beijing, where economic negotiations and trade discussions are expected. The offshore yuan held near three-year highs, reflecting market anticipation of potential deals between the world's two largest economies. Sterling and the euro both weakened this week amid broader dollar strength and regional political uncertainty.
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