Dollar Gains as Fed Rate-Cut Rethink Fuels Best Year in Nine
- Fed’s slower pace of interest-rate cuts to aid the dollar
- Many Trump policies will be dollar bullish early 2025: TD
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The US dollar rose Tuesday, capping its strongest yearly advance in nearly a decade as the solid US economy and President-elect Donald Trump’s tax-cut and tariff policies promise to keep interest rates elevated.
The gain drove the Bloomberg Dollar Spot Index to the highest since November 2022. It has risen 8% this year, the most since 2015, after the surprisingly resilient expansion drove traders to dial back expectations for how much the Federal Reserve will ease monetary policy.