The dollar index was on track for a modest weekly gain on Friday, having bounced off this week’s one-month lows as the euro took a heavy spill while sterling stayed under a cloud on jitters over the upcoming Brexit vote.
The dollar index added 0.3 per cent to 94.185, pulling away from Wednesday’s trough of 93.425, its lowest since May 11, and was up 0.2 per cent for the week.
Driving the index’s rise was a bearish turn in the euro, which slid 0.2 per cent to $1.1298, further distancing itself from the previous session’s one-month high of $1.1416. The European currency was poised to slip 0.6 per cent for the week.
A Reuters report on Commerzbank looking to put billions of euros in vaults rather than pay a penalty charge for parking them with the European Central Bank appeared to have unsettled an already nervous market.