He global dollar rose and was near one-year highs against its major peers on Thursday, 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 relative to a basket of six other internationally relevant currencies—improved 0.17% to 106.64, near its highest level since early November 2023.
In this way, the greenback exceeded 156 yen for the first time since July, and grew by 0.56%, to 156.38 yen. He euro plummeted to its lowest level since November 2023 and fell 0.45%, at $1.05165, while the pound sterling reached its lowest level against dollar in four months, at 1.2651 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 fell 3.7 to 4.414% on Thursday, moving away from its highest level since July.
Economic data and projections from the Fed
In turn, the producer prices of the United States rebounded in October, the Department of Labor, a day after data showed consumer inflation had barely budged last month.
The number of Americans who filed new claims for benefits unemployment fell last week, suggesting labor market strength, according to the Labor Department.
These data did not change the opinion that the Federal Reserve would implement a third interest rate cut next month. He Fed Chairman Jerome Powell He said on Thursday there was no need to rush to cut rates, given the strength of the US economy.
Her speech echoed earlier comments Thursday from Federal Reserve Governor Adriana Kugler and the president of the Richmond Federal Reserve, Thomas Barkin.
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 retreated from an all-time high of $93,480 overnight and rose 0.96% to $89,489. The president-elect has promised to make the United States “the crypto capital of the planet”.
Source: Ambito
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