The dollar increased by the most in almost two months as the U.S. economy rebounds at a faster pace than others in Europe and Asia, leaving traders covering short bets and rebalancing portfolios as the month ends.
The Bloomberg Dollar Spot index climbed as much as 0.7% on Friday, the most since March 4, trimming its first monthly loss this year. The greenback’s gains picked up steam after data showed personal incomes rose the most since 1946, inflation advanced and a gauge of business activity beat expectations.
The gains strengthened the currency against all of its Group-of-10 peers, driving the euro down by the most in a month as the shared currency broke through its 100-day moving average. The MSCI Inc. gauge of emerging-market currencies declined, heading for the first drop in five sessions.
The dollar is now poised to end a three-week losing streak. President Joe Biden administration’s…