The US dollar retreated from its near eight-week low on Friday as it strengthened against euro and Swiss franc on Friday while stocks in major markets slumped after more official of the US Federal Reserve bet on the possible rate hike.
San Francisco Fed President John Williams reiterated that it could be costly if the central bank waited too long to raise rates and that a possible rate hike should be effective come September.
The greenback stood tall against major rivals on the revived Fed rate hike expectations as dollar index added 0.35% to close at 94.480, erasing the near eight week lows touched on Tuesday.
The euro was down 0.3% and closed at 1.1318, below its week-high of 1.1365 while the Swiss fell 0.5% to close at 0.9589. Against the yen, the dollar was last up 0.33%, closing at 100.20 yen.
Meanwhile, stocks indices in Wall Street edged lower as the Dow Jones industrial average lost 45.13, or 0.24%, to close at 18 552.57, US benchmark S&P 500 dropped 3.15 points, or 0.14%, to finish 2 183.87 while NASDAQ composite fell 1.77 points, or 0.3%, to settle at 5 238.38.
Stocks market around the world fell 0.4%.
Commodities are no exemption on the effect of the views of the Fed’s official to increase interest rates this year.
Gold snapped its four-day streak of gains, dropping 1 % on Friday, but was still on track for its second straight week higher.
Spot gold dived from $1 340.91 to a session low of $1 3337.37 per ounce, falling as much as 1.5%. Spot silver dropped 2.6 %, closing at $19.23 an ounce, the lowest since July 21, while Spot platinum was down 1.27 percent, settling at $1 110.74.
In oil, the International benchmark Brent crude oil futures dropped 17 cents to close at $50.72 per barrel, after touching a session peak of $51.22.
US West Texas Intermediate crude gained more than 9% from its previous close of $44.19 as it added 30 cents to close at $48.52.