The U.S dollar rose on Friday while world stock markets were steady, as investors braced for the likelihood of a hike in U.S. interest rates in coming months.
The MSCI All-Country World equity index .MIWD00000PUS edged higher by 0.1 percent.
The pan-European FTSEurofirst 300 index .FTEU3 of leading European shares slipped 0.1 percent but remained in touching distance of a one-month reached earlier this week.
“Markets are doing remarkably well given that a U.S. interest rate rise might happen as early as next month,” said Lex Van Dam, hedge fund manager at Hampstead Capital.
The dollar index .DXY rose 0.1 percent and was on track for its best monthly performance since last November, after a string of U.S Federal Reserve officials raised expectations for a hike in interest rates as early as June, given signs of strength in the world’s biggest economy.
Investors were also looking out for further clues on when U.S. rates might go up from a speech due later in the day from Federal Reserve head Janet Yellen.
“I’m not sure if U.S. interest rates will go up in June, but July is quite likely,” said Clairinvest fund manager Ion-Marc Valahu, who added that he had recently canceled some earlier “short” positions that were betting on the dollar losing ground.
A stronger U.S. dollar can often lift European stocks, since a weaker euro can help European companies to export their goods overseas.