Dollar holds gains as attention turns to spending data for Fed clues

By Rocky Swift

TOKYO (Reuters) -The dollar held on to steep gains on Friday after better-than-forecast U.S. data dampened expectations for further easing by the Federal Reserve this year.

The dollar index, which measures the greenback against major peers, climbed 0.6% in the previous session after figures on U.S. economic growth, unemployment claims, durable goods, and wholesale inventories all beat expectations.

The yen traded at an eight-week low following a new raft of tariffs announced by U.S. President Donald Trump. Attention now turns to Friday’s release of U.S. consumer spending data for signals of how urgently the economy needs additional stimulus from the Fed.

“Markets are reading through to this, and you can see a few basis points pared off of the lower rate forecasts,” said