Greenback hits multi-month peaks versus euro, yen and loonie
On Monday, the greenback ascended in Asia, reaching multi-month peaks against the euro, the Japanese yen and the Canadian dollar, powered by ongoing speculation that American President-elect Donald Trump’s fiscal stimulus will spur the American economy and lead to further rate increases by the Federal Reserve.
Speculation has grown that Trump’s probable spending expansion as well as tax cuts will spur the American economic growth and the Fed will increase rates in December and go on with its tightening path next year. Apparently, higher interest rates on the greenback assets tend to attract investment from abroad.
The currency pair EUR/USD traded at $1.0794, having reached the 10-month minimum of $1.0773 earlier in the day. On Friday, the euro traded at $1.0856 in New York.
The currency pair EUR/JPY gained 0.20%, trading at ¥107.54 yen, having hit as high as ¥107.59, the highest value since June 7.
Yet, some traders remained cautious enough regarding the longer-term outlook for the greenback, especially considering uncertainty over the combination of economic measures Donald Trump could take.