June 25, 2006	Sunday	Jumadi-ul-Awwal 28, 1427

NEW YORK, June 24: The dollar vaulted higher Friday, hitting an eight-week high against the euro, amid mounting expectations of at least two more rate hikes from the US Federal Reserve in the coming months.

The euro fell to 1.2509 dollars at 2100 GMT from $1.2575 late on Thursday in New York as the greenback rose to its best level since late April.

The dollar climbed to 116.54 yen from 116.10 yen on Thursday.

Although another quarter-point rate hike from the Federal Reserve expected on June 29 has been factored in, traders were becoming increasingly confident of at least one additional increase.

The US dollar has found new life the last two days on expectations the Fed will keep on hiking,” said Mark Ellerbeck of Scotia Capital.

“Some market participants are looking for rates to rise as high as 6.0 per cent by year end from current 5.0 per cent.Analysts said the market was looking for direction from the statement accompanying the Fed's expected hike in the funds rate to 5.25 per cent on Thursday.—AFP