Dollar holds firm ahead of U.S. inflation
The U.S. dollar held near a 6-1/2-month peak against major peers and bitcoin was solidly poised just below record highs on Wednesday as markets sized up so-called Trump trades ahead of key U.S. inflation data later in the day.
The dollar is reaping the benefits of Republican Donald Trump’s victory in the U.S. presidential election last week, with investors pricing in policies of lower taxes and trade tariffs under the incoming administration that are seen as inflationary.
The Trump trade has pushed up U.S. Treasury yields as markets wager the Federal Reserve may temper the extent of its future rate cuts.
The President-elect’s Republican Party looks set to control both chambers of Congress when Trump takes office in January, Decision Desk HQ projected on Monday, enabling him to push an agenda of slashing taxes and shrinking the federal government.
The U.S. dollar index which measures the currency against a basket of currencies, tacked on 0.02% to 106.01, not far from Tuesday’s high of 106.17, its strongest since May 1.(Cay)
Source: CNBC
