European focus: The dollar rose to 8-week high against the yen.[E]

The dollar rose to 8-week high against the yen, and lifted against the EUR, on speculation stronger US growth will prompt Fed to raise its key rates twice more this year.
Fed Atlanta President Jack Guynn will speak today on U.S. economy outlook
The market focus still remains on a monetary policy and borrowing costs especially that supports USD on his winning rally, - says Niels From, Dresdner Kleinwort Wasserstein. Traders are also priced with additional rate increase after June.
The Fed cannot allow the economy to expand above its potential level without underpinning a sustained increase in inflation, Fed Governor Donald Kohn said June 16.
Fed officials may signal the economy is robust enough to keep elevating key rates to curb inflation,said Mamoru Ashimoto, Shinsei Bank. тАЬThis will boost dollar gains.
Barclays Capital, JPMorgan Securities Inc., Lehman Brothers Holdings Inc. UBS analytics believe that Fed rates will climb 5.5% by the end of August. Nevertheless some economists suppose dollar gains may be limited by concern further Fed rate increases will slow down economy growth.
Its necessary to be prepared for further cooling of U.S. economic conditions in a long-term period.'' said Hans Guenter Redeker, BNB Paribas SA. I could imagine U.S. economic data in August being very sobering and that should step down expectation of higher interest rates.
The euro may bolstered after ECB representative Erkki Liikanen commentaries that borrowing costs lift is rather possible.
If there is any risk, then we will act,тАЭ he said on June 16."We are not fixed, neither as far as timing is concerned nor size. When it's necessary to take decisions, we take them without any doubts."