By Darryl Thomson, Financial Times

The dollar hit an 18-month high against the euro and a 27-month high versus the yen on Friday, helped by expectations of further monetary tightening by the Federal Reserve.

The outlook for yield differentials was the driver for currencies this week.

US interest rates are set to continue upwards. Although a move toward higher interest rates in the eurozone is expected, the timing of the first move now appears less certain.

Meanwhile, the end of ultra-loose monetary policy in Japan was perceived to be a long way off. (FT.com)