2024 Outlook: Dollar’s Strength Supported by Fed Caution and Trump Trade Policies

2024 Outlook: Dollar’s Strength Supported by Fed Caution and Trump Trade Policies

Authored by Ankur Banerjee

In Singapore, the dollar remains⁣ strong on the final trading day of​ the year, set to record significant gains in ⁢2024‌ against most currencies. This is⁢ due to⁢ expectations of fewer U.S. rate​ cuts and anticipation of policies from⁢ the incoming Trump administration.

Boosted ‍by increasing Treasury yields, the dollar’s rise has pushed the yen towards its lowest levels since July. As of Tuesday, it⁢ stood at​ 157.02 per ‍dollar, heading for a 10% decline in 2024 – marking its fourth consecutive year of weakening against the dollar.

With Japanese markets closed for the‌ remainder ⁢of the week ⁣and many other markets shut on​ Wednesday for New‍ Year’s Day, trading volumes are expected to be‌ minimal.

This has ‍kept the dollar⁣ index near 108.06, ​not far⁣ from its two-year peak reached earlier this month. The index has climbed by 6.6% in⁤ 2024 as traders reduce expectations of ⁤significant rate cuts next year.

The Federal Reserve’s unexpected moves have also impacted…

2024-12-30 19:59:42
Source: finance.yahoo.com

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