Home > Forex News > Dollar Loses Out On Its Winning Streak against Major Currencies

Dollar Loses Out On Its Winning Streak against Major Currencies

November 23, 2016
Share Button

Dollar Loses Out On Its Winning Streak against Major Currencies

In the past 10 days, the US dollar continued to experience gains without any break. Now, the winning streak has slowed down for the currency. The election of Donald Trump as the President of the United States has increased the interest of the investors in the US dollar because the market was expecting fiscal stimulus and increase in interest rates. The US dollar reached its peak value since April 2003.

The ICE dollar index decreased 0.3% and WSJ dollar index by 0.5%. The EUR USD pair increased slightly earlier but it settled down at $1.0629. The GBP USD pair increased by 0.0400% and it was the first prominent gain for the GBP after Britain’s Brexit vote.

The USD JPY stabilized at ¥110.73 compared to ¥110.92 on Friday. As the Federal Reserve president William Dudley said on Friday that the expectations for inflation are well-anchored, investors began selling Yen and purchased Dollar. Japanese investors didn’t contribute to the increase in US dollars because they were not happy with the uncertainty surrounding Trump economics. The foreign investors were responsible for driving the value of the dollar. The Bank of Japan took the responsibility of maintaining the interest rates in Japan irrespective of the rise in the US dollar.

As the Yen weakens, it can help the Japanese exporters to profit more as they reduce the price of the goods in other currencies. Going against the expectations of the economists, the Japanese economy increased by 2.2% in the recent quarter.