The dollar reached the highest level in 3 weeks

The dollar reached its highest level in three weeks against major currencies today, amid expectations that the Federal Reserve (the US central bank) will cut interest rates this week but will indicate a gradual pace of monetary easing in 2025.

Bitcoin exceeded $105,000 for the first time, supported by indications that US President-elect Donald Trump will move forward with forming a potential strategic reserve of that cryptocurrency.
The dollar received additional support from the rise in US Treasury bond yields.

According to CME’s Fed Watch service, traders are confident that the Federal Reserve will cut interest rates by a quarter of a percentage point on Wednesday, but they currently expect officials to be reluctant to cut them in January.
With inflation rising above the central bank’s annual target of 2 percent, Federal Reserve policymakers say the latest increases are part of a bumpy path toward reducing price pressures.

But analysts said they would likely be concerned about renewed inflation after Trump takes office in January.
The dollar index, which measures the performance of the US currency against the euro, the pound sterling, the Japanese yen and three other major currencies, settled at 106.80 points by 06:05 GMT after rising to 107.18 points on Friday for the first time since November 26.

The dollar rose 0.1 percent to 153.87 yen, and had previously touched 153.91 for the first time since November 26.
The pound sterling rose 0.22 percent to $1.2636 from $1.2607 on Friday, its lowest level since November 27.

The euro increased 0.2 percent to $1.0518 after falling to $1.0453 at the end of last week, recording its weakest level since November 26, and was not affected by news that Moody’s credit rating agency had suddenly downgraded France’s rating on Friday.
Bitcoin has gained 3.6 percent since yesterday’s close, reaching its highest level ever at $106,533.