* Dollar index hits highest since May 30
* British PM May falls short of parliamentary majority
* C$ strengthens as strong jobs data builds case for rate
* Graphic: World FX rates in 2017 tmsnrt.rs/2egbfVh
(Updates with U.S. market open; changes dateline; previous
By Saqib Iqbal Ahmed
NEW YORK, June 9 The dollar rose to a 10-day
high against a basket of currencies on Friday, boosted by a
weaker British pound after Prime Minister Theresa May's
Conservative Party lost its parliamentary majority in national
The dollar index, which tracks the greenback against
six major rivals, was up 0.46 percent at 97.364.
The index had fallen to a seven-month low midweek on caution
ahead of U.S. Senate testimony by former FBI Director James
Comey and the British election. But on Friday, it added to gains
from the previous session.
Comey on Thursday accused President Donald Trump of firing
him to try to undermine the bureau's investigation of possible
collusion between his 2016 presidential campaign team and
Russia, but did not say whether he thought the president sought
to obstruct justice.
The euro was down 0.24 percent to $1.1185 against the
dollar, a day after the European Central Bank closed the door on
more interest rate cuts.
"The overall sentiment is that regardless of what is going
on elsewhere, the U.S. is a safe haven for investors and
traders," said Minh Trang, senior currency trader at Silicon
Valley Bank in Santa Clara, California.
"That's why you are seeing the (U.S.) stock market up and
the dollar stronger," he said.
Traders will turn their attention to next week's U.S.
Federal Reserve policy meeting, where the central bank is widely
expected to deliver this year's second rate hike.
"We had weak jobs data last week, but I think they are
really on path to hike rates," Trang said. "Everyone will be
looking at the verbiage, in particular with the Fed's balance
sheet and some of the outlook."
Britain's pound tumbled after an election that denied any
party a majority in Parliament and fomented a sense of political
chaos just days before Brexit talks begin.
The result - flagged by some analysts as the worst possible
election outcome due to uncertainty - caused the pound to fall
as much as 2.5 percent to $1.2635 in early European trade, its
lowest level since May called the election on April 18.
It recovered a little to trade down 1.68 percent to $1.2733.
The Canadian dollar strengthened against its U.S.
counterpart, recovering from an earlier 1-week low as strong
domestic jobs data supported the view that the Bank of Canada
will raise interest rates earlier than previously thought.
(Reporting by Saqib Iqbal Ahmed; Editing by Dan Grebler)