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Indonesia News Portal for Traders | Financial & Business Updates

2 December 2024 17:24  |

Dollar Resumes Gains, Euro Lower on France Risks

The greenback snapped a three-day losing streak amid focus on French budget talks and a fresh currency warning by President-elect Donald Trump.

The Bloomberg Dollar Spot Index rises as much as 0.6% while the yield on 10-year Treasuries is up by three basis points to 4.20%.

Trump warned the so-called BRICS countries he would require a commitment that they wouldn’t create a new currency as an alternative to using the greenback, and repeated threats to levy a 100% tariff if they did. This is a tactic that risks backfiring, market watchers say.

EUR/USD drops 0.8% to 1.0496 before paring losses; one-week risk reversals rise to 13 basis points, puts over calls.

French bonds came under pressure after the far-right party renewed its threats to bring down Prime Minister Michel Barnier’s government if its demands over the 2025 budget aren’t met.

USD/JPY halves a 0.7% gain to trade at 150.29; options-related offers capped the rebound.

GBP/USD down 0.4% to 1.2679; EUR/GBP set for fifth daily drop, trades 0.3% lower on the day at 0.8279.

Source: Bloomberg

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