Singapore, February 20 (QNA) – The US dollar is on course for its strongest weekly performance since October, supported by expectations that the Federal Reserve will maintain a tighter monetary policy stance.

The dollar held onto its gains in early Asian trading, weighing on major currencies, with the British pound hovering near a one-month low at $1.3457.

The dollar index, which measures the US currency against a basket of major peers, approached its highest level in nearly a month at 97.89 in recent trading, putting it on track for a weekly gain of more than 1%, its best performance in over four months.

Markets are awaiting the release later today of the US core personal consumption expenditures (PCE) price index, the Federal Reserve’s preferred inflation gauge, along with fourth-quarter GDP data, both of which are expected to influence the dollar’s near-term trajectory.

Among other currencies, the Australian dollar fell 0.08% to $0.7055, but remained on track for a modest weekly decline of around 0.2%, supported by expectations of tighter domestic monetary policy. The New Zealand dollar declined 0.12% to $0.5967, while the Japanese yen slipped 0.05% to 155.08 per dollar. (QNA)