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Friday 25 November 2016

The dollar steadied after pre-holiday growth

The dollar stabilized in the course of trading on Thursday, breaking the majority of last year's highs against the euro.
Given the fact that US markets are closed because of Thanksgiving Day, trading activity was low yesterday after the dollar set a series of new highs early in the session in Europe, expanding its growth after strong economic data from the United States published on Wednesday.
The US currency hit an eight-month peak against the Japanese yen and the high of nearly 14 years to a basket of six major rivals.
In addition, the dollar renewed record highs in a number of emerging market currencies, including the Indian rupee, the Turkish lira and the offshore renminbi trading in which are held outside of mainland China.
The dollar's rise is largely due to expectations that the policy of Donald Trump will stimulate inflation, which will lead to an increase in Fed interest rates and potentially increase the inflow of capital into the country.
In developed markets, most strongly affected by the election of Trump is the yen. It fell by 0.6 percent to 113.15.
The euro is trading around the level of $1.0572 after falling to a low of $ 1.0518, while the dollar index held near 101.58, retreating from the morning peak 102.05.

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