Home » Business » The dollar falls to its lowest level in a week as the momentum of Trump’s victory fades

The dollar falls to its lowest level in a week as the momentum of Trump’s victory fades

US dollars

The US dollar continued to decline to a one-week low against other major currencies on Wednesday, continuing its three-day slide from weekly highs as the market caught its breath after the wild rise as a result of Donald’s election. Trump as President of the United States.

The support he received did not last Dollar And other traditional safe-haven currencies such as the yen overnight, after Russia’s Foreign Minister said Moscow would do “everything possible” to avoid nuclear war, hours after Russia announced it would of the conditions that limit a nuclear strike.

Bitcoin reached a new peak above $94,000, supported by expectations of a friendlier regulatory environment for cryptocurrencies under Trump.

The dollar index – which measures the performance of the US currency against six major currencies, including the yen and the euro – fell to a low of 106.07 points for the first time since Wednesday last week, and reached 106.18 at 0247 GMT.

The index rose to a one-year high of 107.07 on Thursday, supported by expectations of big fiscal spending, tax hikes and tightening immigration laws under the next US administration, measures that economists saying that inflation could increase and possibly reduce the pace of the Fed. American monetary policy.

Investors are awaiting Trump’s choice of his nominee for the Treasury Department, after announcing several other important positions, including the selection of Howard Lutnick for the position of Secretary of Commerce.

Some of Trump’s nominees have drawn controversy because of their limited experience in this area.

“(Trades bet on Trump’s policies) which have boosted the value of the dollar in the face of challenges from Trump’s controversial Cabinet nominations and the escalation of the Russia-Ukraine war,” DBS analysts wrote in the note to clients.

They said for the dollar in the long term, “more emphasis should be placed on strong economic data and the growing possibility that the Federal Reserve will be forced to taper… Interest rates More so in 2025.”

Traders continue to reduce their expectations of a cut in interest rates at the next US central bank meeting in December. According to the CME Group’s Fed Watch tool, the numbers are now at 57.3 percent, down from 58.7 percent the previous day. A month ago, the numbers were 76.8 percent.

US Federal Reserve Chairman Jerome Powell said last week that “the economy is not sending any signs that we need to rush to lower interest rates,” after a series of strong economic indicators.

The dollar rose 0.9 percent to 154.84 yen after falling sharply to 153.28 yesterday, Tuesday, after news coming from Russia.

The euro settled at $1.0598 after recovering from its decline to $1.0524 in the previous session.

Bitcoin settled at $91,954 after earlier rising to a record high of $94,078.22.

The Financial Times reported that the social media company, which is owned by Trump, is in talks to buy the cryptocurrency trading company Bakkt, raising hopes of creating a cryptocurrency-friendly system under his administration.

2024-11-20 04:30:00
#dollar #falls #lowest #level #week #momentum #Trumps #victory #fades
detail photograph Interviewer: We are excited to have two esteemed guests with us today, Dr. John Smith, a renowned economist, and Ms. Jane Doe, a financial ⁢analyst, to discuss the recent movements ⁢in the dollar ‌and‍ Bitcoin markets. The US dollar fell⁤ to its lowest level in a week ​after⁢ the momentum⁣ from Trump’s victory faded. Dr. Smith, can you tell⁣ us why do you think this happened, and what could be the⁣ implications for the dollar’s future?

Dr. John Smith: ‍Well, the dollar’s decline can be attributed to several factors.​ Firstly, Trump’s victory has diminished as investors realize‍ the challenges ahead⁣ with his controversial cabinet‌ nominations ‍and the ongoing Russia-Ukraine conflict. Secondly, more emphasis is being ​placed on ⁤strong economic data and⁤ the ​potential for the Federal Reserve ⁤to hike interest rates,⁤ which could weaken the⁤ dollar’s attractiveness as a safe ‌haven currency. Lastly, the market⁤ has digested⁣ the policies⁣ that Trump’s ​administration is likely to pursue,⁢ suggesting‌ that fiscal⁣ stimulus and protectionism might not⁣ materialize as quickly or as aggressively as initially expected.

Interviewer: That’s an interesting perspective. Ms. ‍Doe, how do ‍you see the future of the dollar ⁣in light of these developments?

Ms. ⁢Jane Doe: I agree with Dr. Smith’s assessment. The⁢ dollar’s fundamental strength is still intact, but⁤ we may see‍ some‌ volatility ‍in the short term.⁤ I believe that the US dollar index could⁣ stabilize around the ⁤current levels,⁢ given the expectation of strong economic ‌data⁣ and the Fed’s ​caution ​towards interest rate hikes. ‍However, we need to keep ⁢an eye on geopolitical risks​ and potential‍ changes‌ in trade policies, ​which could impact the currency’s⁤ value.

Interviewer: Moving ‌on​ to Bitcoin, it reached a new peak above $94,000 supported by expectations​ of a friendlier​ regulatory environment under Trump. What ⁢is your take on this, ⁢Dr. Smith?

Dr. ‌John ⁤Smith: Bitcoin’s surge is intriguing, but I am ‍still cautious about its long-term‌ prospects. While ⁤a ‍more favorable regulatory environment could⁣ strengthen its appeal, Bitcoin is still highly ⁢spec

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.