Singapore - Saba:
The dollar rose after the gains it achieved throughout 2024 against most currencies, while the yen fell to its lowest levels in more than five months with expectations that the US interest rate will remain high for a longer period.
According to Reuters, the dollar index, which measures the US currency against six other currencies, rose to 108.53 in early trading, which is slightly less than the highest level in two years that it recorded on Tuesday. The index had risen 7 percent in 2024.
The yen, one of the worst-hit, fell more than 10 percent in its fourth year of decline, while the Japanese currency fell to 157.54 against the dollar.
Weaker growth expectations outside the United States, geopolitical tensions in the Middle East and the war between Russia and Ukraine helped boost demand for the dollar.
The euro was steady at $1.0353 after falling more than 6 percent in 2024. Traders expect deeper interest rate cuts from the European Central Bank in 2025, with markets expecting cuts of about 113 basis points versus 42 basis points from the US central bank.
The pound was steady at $1.2519. Sterling lost 1.7 percent last year but was among the best currencies amid a better-than-expected British economy.
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