The US currency was dragged down by the momentum of the currencies of Japan and European countries.
He global dollar fell in the middle of an exchange day reduced by the holiday Thanksgiving in USA, while the yen and the euro they rebounded.
He dollar index —which measures the performance of the greenback in relation to a basket of six other currencies of international relevance— fell to a two-week low at 105.61 units, and then settled at 105.79, after having dropped 0, 26%. Despite this, it closed November with an increase of 2%, driven by the clear electoral victory of donald trump on Nov. 5, which raised expectations of big fiscal spending, higher tariffs and tighter borders, all of which economists consider inflationary.
Anyway, the dollar has fallen in recent days, dragged down by a drop in Treasury bond yields American after Trump announced who will be his Treasury Secretary. On the other hand, the yen has been the star of the week, with gains of more than 3%, which would be its best week since July.
The currency of Japan has been boosted by safe haven flows amid the US president-elect’s threats of broad tariffs; and by increasing bets on BOJ rate hikes. In that sense, the yen rose more than 1% against the dollar to hit a six-week high on Friday, after faster-than-expected inflation in Tokyo would support bets that the Bank of Japan (BoJ) will raise interest rates next month.
“The yen is becoming the ultimate momentum trade… with little friction preventing it from rising in a thin holiday session,” he told Reuters. Matt Simpson senior market analyst City Index.
Traders are currently betting on a 60% chance of a quarter-point rise on December 19, and just over half of economists in a Reuters poll predicted the same. What potentially increases the case for an increase is that the basic consumer price index (CPI) Tokyo, which excludes volatile fresh food costs, rose 2.2% year-on-year in November from a year earlier, up from 1.8% the previous month and beating forecasts for a 2.1% rise.
Source: Ambito
David William is a talented author who has made a name for himself in the world of writing. He is a professional author who writes on a wide range of topics, from general interest to opinion news. David is currently working as a writer at 24 hours worlds where he brings his unique perspective and in-depth research to his articles, making them both informative and engaging.
