Dollar hits 8-month high as easing fears hammer euro

The dollar hit an eight-month high against a basket of currencies on Friday as speculation the Swiss National Bank could follow the European Central Bank in cutting deposit rates further pushed major competitors lower.

The dollar rose to its highest against the Swiss franc since August 2010 on speculation the SNB will cut its deposit rates deeper into negative territory next week.

The euro, under pressure all week from expectations the ECB will also loosen policy further to support the euro zone economy, fell below $1.06 in trade thinned by the Thanksgiving holiday weekend in the United States. It fell 0.1 percent against the dollar to $1.0599.

Most analysts anticipate the Federal Reserve will raise U.S. interest rates next month, strengthening the dollar, two weeks after the ECB is expected to announce further easing.

The dollar index, which measures the greenback against six major currencies, touched a high of 100.200, closing in on its yearly peak of 100.390.