Dollar Dips, but Remains Near Two-Year High
FridayS currency markets saw the US dollar weaken against major global currencies.However, the greenback remains remarkably close to its highest level in over two years, a peak reached just yesterday. This sustained strength reflects ongoing market speculation surrounding the incoming management and its potential economic impact.
the market’s focus remains firmly on the upcoming presidential transition and the anticipated policies of the incoming administration. Investors are especially keen to see how the new president’s trade agenda will unfold, especially concerning potential protectionist measures against key trading partners like Canada and China. The dollar’s future trajectory is inextricably linked to these upcoming decisions.
Adding to the economic picture, today’s release of the institute for Supply Management’s (ISM) Purchasing Managers’ Index (PMI) for manufacturing activity provided further insight. The December PMI registered 49.3 points, a slight increase from November’s 48.4 points and exceeding analysts’ predictions of 48.2 points. While this suggests a modest enhancement, it still remains below the 50-point mark that separates expansion from contraction in manufacturing activity.
In terms of specific trading activity, by 19:29 GMT, the dollar had decreased by 0.4%,settling at 108.9 points.Intraday trading saw a high of 109.2 points and a low of 108.9 points. This level still surpasses the dollar’s previous high since October 2022, which stood at 108.79 points.
Other Currency Movements
The Australian dollar saw a modest gain against the US dollar,rising 0.2% to 0.6216 by 20:00 GMT. Conversely, the canadian dollar experienced a slight decline, falling 0.3% to 0.6921 by 20:03 GMT.
The ongoing uncertainty surrounding the new administration’s economic policies continues to create volatility in the global currency markets. Analysts will be closely monitoring the situation for further developments and their impact on the US dollar and other major currencies.
The US dollar weakened against major global currencies on Friday but remained near a two-year high. [1] This strength is attributed to market speculation about the incoming administration’s economic policies.[1] The dollar’s future trajectory is linked to the new president’s trade agenda and potential protectionist measures. [1]
TheISM Purchasing Managers’ index(PMI) for manufacturing activity registered 49.3 points in December, slightly up from November but still below the 50-point mark that indicates expansion. [1] By 19:29 GMT, the dollar had decreased by 0.4% to 108.9 points. [1]
The australian dollar rose 0.2% to 0.6216 against the US dollar, while the Canadian dollar fell 0.3% to 0.6921. [1]
