He global dollar closed lower after its biggest daily rise since 2022, but remained near four-month highs in the early hours of Thursday after the victory of donald trump in the elections in the United Statesand as investors prepared for various central bank decisions, including the Federal Reserve (Fed).
After the Fed decided to lower the interest ratesFor the second time in a row, the dollar index — which measures the performance of the greenback relative to a basket of six other internationally relevant currencies — fell 0.57%, after reaching its highest level since July 3 on Wednesday, when it recorded its biggest gain in a single day since September 2022, an increase of 1.5%.
The move in the currency on Wednesday was as much as a 2% rise, as investors piled into U.S. assets they hope would benefit from Trump’s proposed policies on duty and taxes. For his part, the bitcoin fell 1.2% to $75,025, after reaching an all-time high of $76,499.99.
The euro recovered after the events in Germany
Meanwhile, the euro rose 0.6% to $1.0791 after Wednesday’s 1.8% drop, as investors also digested political turmoil in Germany, where Chancellor Olaf Scholz fired his Finance Minister Christian Lindner, causing the collapse of the three-party ruling coalition and setting the stage for an early election.
The analysts of the Deutsche Bank They said that, while it was too early to tell, the developments could be positive for the euro due to the potential confidence boost from a more stable German government and the direct economic effects of a potentially more proactive fiscal stance.
The yield on 10-year German government bonds rose 4.4 basis points to 2.437%.
Before the Fed, the Bank of England on Thursday cut interest rates by a quarter point for the second time since 2020. The bank said future reductions will likely be gradual as it saw higher inflation after the new government’s first budget last week.
The pound sterling It extended its gains slightly after the decision and was last up 0.7% at $1.2969, following a 1.24% drop on Wednesday.
Meanwhile, the prices of gold They rose more than 1% on Thursday, after falling to a three-week low on Wednesday.
In turn, the oil reversed losses caused by the US election sell-off. Brent rose 1% to $75.68 per barrel, while US crude West Texas Intermediate (WTI) It also advanced 1% to $72.36.
Source: Ambito
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