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Indonesia News Portal for Traders | Financial & Business Updates

2 January 2025 17:36  |

Dollar Index Hits 25-Month High

The dollar index dipped to around 108.3 on Thursday, starting the year on a subdued note following a strong performance in 2024. Last year, the greenback gained about 7% against a basket of major currencies, as the Federal Reserve signaled a more cautious stance on interest rate cuts amid ongoing inflationary pressures.

The dollar also received a boost from Trump’s impending return to the White House, with his proposed policies—such as deregulation, tax cuts, higher tariffs and tighter immigration measures—viewed as pro-growth and inflationary. Additionally, concerns over slower growth in other major economies and persistent geopolitical risks contributed to safe-haven flows into the dollar. Looking ahead, traders are closely watching Thursday’s weekly jobless claims data for further insight into the health of the labor market.

Source: Trading Economics

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