Dollar Sustains Its Value After New Year
The election of Donald Trump as the new President of the United States and hopes of fiscal stimulus has encouraged the US dollar to climb in value. As a result, US Dollar beat all of the international currencies reaching all-time highs against a basket of foreign currencies. By the end of the Year, Dollar was going strong and the bullish sentiment was expected to continue in 2017 as well.
The expectations of increased interest rates continue to support US Dollar as it held its ground firmly on Tuesday. The holiday in Japan resulted in decreased trading volume. As a result, Dollar was able to fetch 117.35 Yen which increased from 116.05 on Friday. The dollar also gained 0.4% against a basket of currencies with the index at 102.600.
The holidays have considerably reduced the liquidity in the market and Dollar is responsible for changes in the market conditions. In the previous week, the demand for Dollar was slightly less for the first time in October. However, in the present week, speculators show an increased interest in Dollars and continue to bet higher. The greenback has also reached its 14-year high as the Federal Reserve expressed its plans to increase the interest rates three times in this year. According to currency experts, Dollar will gain at least another 10% in the upcoming eighteen months. As the Trump administration obtains approval from Congress for tax cuts, Dollar will soar again.
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