Dollar Soars to Biggest Weekly Gain in 3 Years

Greenback posts record advances ahead of G8 meeting
By Jason Farago,  Newser Staff
Posted Jun 13, 2008 5:21 AM CDT
The dollar posted its biggest gains in years this week, with many analysts predicting further rises against the euro and the yen.   ((c) matze_ott)
camera-icon View 3 more images

(Newser) – The dollar posted its biggest gain in almost 3 years this week, soaring 2.5% against the euro and 2.8% against the yen. This morning in London the dollar was trading at $1.54 against the euro, with analysts predicting a rise as high as $1.45 by year's end. European politicians are delighted with the greenback's resurgence; Christine Lagarde, France's finance minister, called it "very satisfying."

"The US is serious about putting a floor under the dollar," one currency strategist told Bloomberg. "Fed officials are saying they are well aware of the link between dollar weakness and higher inflation."