The dollar is making new gains every week

Today, the dollar is on track to record its best weekly performance in over a month, supported by expectations that the Federal Reserve (US central bank) will cut interest rates less and believes that Donald Trump’s policies could increase inflation when he takes office. January.

The dollar is nearing its highest level in a year against a basket of currencies at 106.81 and is on track to achieve a weekly gain of 1.76 percent in its best performance since September.

The pound sterling is heading for a weekly loss of two percent, which represents the biggest weekly decline since January 2023. It rose slightly in the latest trade, 0.06 percent, to $1.2676.

In the latest trade, the euro registered $1.0541, staying close to the lowest level in a year that it registered in the previous session. It is expected to register a weekly decline of 1.67 percent, which is also the lowest in more than a month.

The Chairman of the US Central Bank, Jerome Powell, said yesterday, Thursday, that the bank does not need to rush to reduce interest rates, and attributed this to continued economic growth and the strength of the labor market.

Traders accepted his statements by reducing their bets on the speed and size of interest rate cuts. According to CME’s Fed Watch tool, bets on a 25 basis point cut in interest rates next month fell to just 48.3 percent from 82.5 percent a day ago.

Higher tariffs and stricter immigration laws under President Trump’s administration are expected to increase inflation, which could slow the monetary easing cycle in the long run.

In exchange for the strong dollar, the yen returned to the scene again and continued the decline to a level that had previously been necessary between the Japanese authorities.

The yen fell 0.1 percent against the dollar to 156.39 yen, and is on track to record a weekly decline of 2.4 percent.

The Australian dollar rose 0.12 percent to $0.6462 and is expected to decline 1.85 percent during the week, its worst weekly performance in four months.

The New Zealand dollar is also on track to record a weekly decline of 1.8 percent. In the latest trade, it rose 0.19 percent to $0.5860, but remained near its lowest level in a year.

The yuan fell in intraday trade against the dollar and was recorded at 7.2234 in the latest trades, going down for the seventh week in a row, which is its longest losing streak. from 2021.

As for cryptocurrencies, Bitcoin fell below $90,000, amid the desire of some investors to take profits after an outstanding performance.