The US dollar rose on Thursday to its highest level since October 27 as the currency recovered from all of its recent losses, which followed Donald Trumpâs victory in the US presidential election. The dollar then proceeded to erase its declines during the previous two weeks as traders adjusted to the surprising win by Trump.
Trumpâs promised agenda as a president include plans for building a wall on the US border with Mexico and ending the North American Free Trade Agreement. These plans and others raised anxiety between traders and caused a massive selloff of the US dollar and risky assets. Traders instead preferred the safety of the Japanese yen and Swiss franc once the US presidency went to Republican Trump.
Investors around the globe are now waiting for more hints on which of Trumpâs economic and political plans will actualize and what would they mean for the US and the global economy. However, the reassuring tonality of his victory speech helped the dollar recover and boosted investorsâ expectations that the Federal Reserve will raise interest rates on December 14.
EUR/USD traded at 1.0901 as of 15:37 GMT after the pair started trading today at 1.1015. EUR/USD rose to 1.1296 at 05:05 GMT before dropping to its lowest level today at 1.0865 at 15:01 GMT.
The Dollar Index, which measures the performance of the US dollar against a basket of major currencies, touched 98.88 at 15:23 GMT after starting the day at 98.50.
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