opened Dollar The new year witnessed its largest daily jump since March 2023, as traders’ bets on the scope of interest rate cuts that the Federal Reserve will make during 2024 decreased.
The Bloomberg Spot Dollar Index closed higher by more than 0.7% on Tuesday as US Treasuries and stocks fell, and this was the largest daily gain for the dollar since the banking turmoil in the United States about 10 months ago, according to “Bloomberg.”
Such a start to 2024 comes after bumpy tracks last year, which fell by about 2.7%, the worst annual performance since the Corona pandemic.
The dollar’s performance over the past year has been largely driven by speculation about when and by how much major central banks will cut key interest rates.
Traders are looking forward to seeing the minutes of the Fed’s December meeting on Wednesday, which will provide details about the meeting in which officials indicated the end of the rate hike period was near.
A batch of labor market data due for release later this week is expected to highlight a labor market that remains resilient while gradually slowing.
The dollar rose against all of its Asian emerging market counterparts on Wednesday, with the South Korean won, Malaysian ringgit and Thai baht among the biggest losers against the dollar.
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2024-01-03 09:40:00
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