Dollar surges to six-week high as interest rate expectations rise

The benchmark US Treasury yields have also surged as investors have raised their expectations for where interest rates will end up. The yield on the two-year US Treasury reached a more than three-month high of 4.718 percent on Friday.

Meanwhile, European Central Bank officials have also indicated that they expect euro zone rates to continue rising. German ECB official Isabel Schnabel warned of the risk of inflation proving to be more persistent than is currently priced by financial markets.

Overall, the strong US economic data and comments from Federal Reserve officials have bolstered the US dollar and led traders to anticipate more interest rate hikes, which could have significant implications for global markets in the coming months.