Dollar Holds Weekly Surge On Talk Of Fed Rate Hike

The dollar held most of its strong recent gains on Friday amid rising speculation the Federal Reserve will hike interest rates ahead of schedule. Bank of America Merrill Lynch changed its dovish outlook and is now forecasting the first rate increase to occur in June 2015, three months ahead of its earlier projection. Encouraging economic from the U.S. also gave the dollar a lift. U.S. retail sales increased in line with economist estimates in the month of August. Retail sales were up 0.6 percent according to Commerce Department data released today. Meanwhile, Thomson Reuters and the University of Michigan released a report showing a much bigger than expected improvement in consumer sentiment in the month of September. The dollar held near $1.6250 for a second day against the sterling, having touched a 10-month peak earlier this week. The pound has fallen sharply over the past month due to concerns that Scotland will vote to separate from the U.K. on September 18. The buck gave back a
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