The dollar fell ahead of Trump’s return to the White House

The dollar fell and the cryptocurrency Bitcoin recorded an all-time high ahead of Donald Trump’s return to the White House later today, as investors focus on his inauguration speech, which may immediately affect the dollar.

The Japanese yen rose to remain near the highest level in a month that it touched on Friday, as traders bet that the Bank of Japan (the central bank) will raise interest rates this week.

Trading is expected to be less than usual due to the US stock market being closed today on the occasion of Martin Luther King Day.

Weak US inflation data and expectations that the Federal Reserve (the US central bank) will cut interest rates several times have enhanced the demand for high-risk assets recently, including Bitcoin, which recorded its highest record level today, Monday, at $109,071.86, before it was recorded in the latest trading. An increase of 4.2 percent at $108,025.

Trump has promised to be a “crypto president” and is expected to issue executive orders aimed at promoting widespread adoption of digital assets.

Some analysts now fear that the US administration’s delay in implementing the measures will disrupt the positive momentum.

Analysts at Goldman Sachs expect changes in US policy to support the strength of the dollar, but they are cautious about near-term risks due to market expectations of a rapid move towards tariffs.

The dollar index, which measures the performance of the US currency against six other major currencies, fell 0.32 percent to 109.08. Last week, it reached a 26-month high of 110.17.

The index has risen four percent since the presidential election in November, with traders expecting Trump’s policies to boost growth and inflation.

The euro rose 0.39 percent to $1.031, but remained near the lowest level in two years that it touched last week amid the threat of customs duties.

“If the International Emergency Economic Powers Act is used for trade-related purposes, markets should see it as a strong statement of intent that the US plans to impose broad tariffs,” Barclays research analyst Sijay Rajadhyaksha said after assessing the announcements that could immediately impact markets. .

The International Emergency Economic Powers Act is a US federal law that gives the president the authority to regulate economic transactions in response to unusual and exceptional threats.

On the fiscal front, Rajadhyaksha said, “We will be watching to see if President Trump will talk about fiscal stimulus.”

In the latest transactions, the yen recorded 156.11 per dollar, as it was not far from the highest level in a month at 154.98, which it touched on Friday. Sources told Reuters that the Bank of Japan is likely to raise interest rates this week if the market does not experience shocks when Trump takes office.