Trump Trades Propels U.S. Dollar to New Heights
The U.S. dollar reached a 6-1/2-month high amid Trump's election victory, sparking investor anticipation of inflationary policies. The yen and euro declined as U.S. inflation data raised possibilities of the Fed curbing interest rate easing. Market focus remains on economic indicators and potential trade tariffs.
The U.S. dollar surged to a 6-1/2-month high against major global currencies on Wednesday, fueled by market reactions to Donald Trump's election victory and impending U.S. inflation data release.
Investors are anticipating new trade tariffs and tax cuts under Trump's administration, potentially leading the Federal Reserve to reconsider the scope of interest rate easing. Meanwhile, Republican gains in Congress are bolstering market support for Trump's agenda.
As Japan's yen hit its lowest level since July, challenges mount for the Bank of Japan. In Europe, pending snap elections in Germany added political uncertainty with potential Trump tariffs looming. Market sentiment remains cautious, focusing on upcoming economic indicators and Federal Reserve decisions.
(With inputs from agencies.)
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