Dollar rises as investors await clarity regarding Trump policies, Fed interest rate decision
Date
11/21/2024 2:12:14 AM
(MENAFN) The dollar experienced a slight increase on Thursday as investors sought more clarity on US President-elect Donald Trump's proposed policies and the Federal Reserve's upcoming decision regarding interest rates. After three days of minimal movement, the dollar regained some strength, pushing the dollar index closer to a one-year high of 107.07, which was reached last week.
Since the US presidential election on November 5, the dollar has risen more than 2 percent, driven by speculation that Trump's policies could potentially fuel inflation and limit future interest rate cuts. This shift in expectations has contributed to the dollar's stronger performance against its main rivals in recent weeks.
A Reuters poll revealed that most economists anticipate the Federal Reserve will reduce interest rates during its December meeting. However, the cuts are expected to be smaller than initially forecast for 2025, given concerns about the inflationary impact of Trump's policies. As a result, the dollar index rose to 106.56, recovering from a low point seen in the previous session.
The euro remained almost unchanged at USD1.0547, following a 0.5 percent drop on Wednesday, as it continued to trend towards the previous week's low of USD1.0496. Meanwhile, the US dollar gave up some of its gains against the yen, falling 0.33 percent to 154.91 yen, despite ongoing pressure on the Japanese currency.
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