Market News
Dollar dominates on cautious Fed, Trump trade - REUTERS
- Summary
- Dollar dominates rivals, set to post 7% annual gain
- Japanese yen among biggest losers on wide interest rate differential
- Sterling holds relatively firm, sees smallest loss against greenback
NEW YORK, Dec 31 (Reuters) - The U.S. dollar hit a two-year high and was on track to post an annual gain against almost all major currencies on Tuesday as the prospect that the Federal Reserve will hold interest rates higher than peers led the U.S. currency to dominate rivals.
Traders have adjusted for the U.S. central bank to take a slow and cautious approach to further rate cuts next year as inflation remains above the Fed’s 2% annual target.
