Dollar Edges Lower as Traders Position for 2025
Bloomberg’s gauge of the dollar fell from near a two-year high amid year-end positioning, and month- and quarter-end flows.
The Bloomberg Dollar Spot Index dropped 0.1%, trimming this year’s gain to 7.5%, still its best annual performance since 2015. The US currency has rallied in recent months on expectations for the “America First” policies of Donald Trump and as traders have wound back bets on Fed rate cuts.
The dollar “has really dominated the markets this year — whether that can continue unfettered next year is the big question,” Vishnu Varathan, head of economy and strategy at Mizuho Bank, said in an interview on Bloomberg Television. “We’ve been big fans of the dollar not relinquishing its position despite Fed cuts”.
The yen gained for a third day, with USD/JPY dropping 0.2% to 156.43. Japan’s currency has still slumped about 9.9% versus the dollar this year, the third worst performer in the G-10.
Japan’s financial markets are shut from Tuesday through Jan. 6. That means there is no trading of cash Treasuries during Asian hours.
EUR/USD was little changed at 1.0412, while AUD/USD dropped 0.1% to 0.6216.
Source : Bloomberg
