LONDON, Aug 19: The dollar made good gains all around on Friday in thin pre-weekend trade amid firm expectations that US interest rates will continue rising. The euro eased to $1.2157 in late European trading from $1.2173 late Thursday in New York.

The dollar stood at 110.48 yen from 110.52 on Thursday.

The euro, after hitting a low of $1.2125, a level not seen since the start of the month, recovered slightly to levels just under $1.22 only to fall back again as US players turned sellers.

“With so little to focus on over the next two weeks and ahead of a full calendar during September the market is starting to delve into seasonal patterns,” said Divyang Shah at IDEAglobal.com.

But unlike previous years, the environment is different — among the most significant factors is that the US Federal Reserve’s interest rate-hiking cycle, which has turned the dollar from a liability currency into an asset currency, he explained.

“In a world of excess saving and low consumption, the hunt for yield is all too evident,” he said talking about the benefits the dollar has received from the higher interest rates in the United States.

Against this backdrop many expect the dollar to rise further.

On the London Bullion Market, the price of an ounce of gold stood at $439.65 against $439.65 late on Thursday.—AFP