He global dollar rose to a one-year high against its major peers on Thursday and was on track for its fifth consecutive daily gain driven by higher yields and the election victory of donald trump in USA.
He dollar index —which measures the performance of the greenback in relation to a basket of six other internationally relevant currencies—added 0.2% to 106.69, its highest level since early November 2023. In this way, it exceeded 156 yen for the first time since July, and was last trading at 155.85 yen. He euro plummeted to its lowest level since November 2023 and was last trading at $1.05554, down 0.13%, and the pound sterling reached its lowest level against dollar in three months, at 1.2675 dollars.
It is expected that the increase in duty trade and the application of more restrictive immigration measures under the incoming administration of trump promote the inflation, which could slow the rate cut cycle of the Federal Reserve (Fed) in the long term, even after recent price variation data, which were lower than expected.
These factors, together with expectations of greater deficit spending and a major growth short-term economic growth, are raising the yields of treasury bondswhich provides additional support to the dollar. In that sense, the 10-year benchmark reached 4.483% on Thursday, its highest level since July.
He Republican Party of the president-elect will control both chambers of the Congress when he takes office in January, he projected Edison Research on Wednesday, giving him broad powers to push his agenda.
“He dollar American is a magical currency backed by the carry, the momentum, the growth differentials (and) the imminent fiscal and tariff stimuli,” he told Reuters Chris Weston research director of Pepperstone. “While the trends do not last forever, until the US economy begins to unravel, an increasingly rich dollar position is likely to prove to be the main factor that could cause a sell-off. marketable assets”.
He dollar had fallen briefly on Wednesday after a measure by the consumer inflation American economy met economists’ forecasts, which kept the Fed on track to cut rates at its December meeting, although traders saw this as a buying opportunity.
“We believe this week’s price action has given us a taste of what’s to come in the coming years.” currency markets in this second term of Trump, with brief corrections dollar, as after the publication of the US CPI yesterday, taken as an opportunity to enter structural long positions in dollars at more attractive levels,” said analysts at ING in a morning note.
The cryptocurrency bitcoin It also shot to an all-time high of $93,480 overnight and, after a brief pullback, was rising back toward that level on Thursday. The president-elect has promised to make the United States “the crypto capital of the planet”.
Record 32 months in Uruguay
In Uruguay, meanwhile, the dollar jumped 1.01% compared to Tuesday and closed at 42,899 pesos in the interbank price of the Central Bank (BCU), thus chaining four consecutive days on the rise to reach a new maximum in 32 months and be on the verge of entering the range of 43 pesos.
The US currency now accumulates a monthly appreciation of 3.0% in November and an annual appreciation of 9.94%, since its price is 3.88 pesos above that registered after the close of the last exchange day of the last year.
Source: Ambito
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