NEW YORK, Dec 26 (Reuters): The US dollar edged higher on Thursday on expectations the currency would be boosted next year by policies by the incoming Donald Trump administration that are expected to boost growth and lift inflation.
Trading volumes were light on Thursday with many traders on holiday after Wednesday's Christmas holiday and before next week's New Year holiday.
Looser business regulations and tax cuts are expected to help propel US growth next year while analysts say that a clamp-down on illegal immigration and the prospect of new tariffs on trading partners could increase price pressures, and weigh on the economy longer term.
That has boosted the dollar against its peers, though there remains a lot of uncertainty over exactly what policies will be introduced and what their impact will be.
Rising doubts over how many interest rate cuts the Federal Reserve will be able to undertake next year has added to the dollar rally in the past few weeks.
The dollar index was last up 0.13% at 108.25. It is holding just below a two-year high of 108.54 reached on Friday.
The euro slipped 0.06% to $1.0398. The single currency fell to $1.03435 on Friday, the lowest since Nov. 22.
Dollar edges up on bets of US growth, inflation
FE Team | Published: December 26, 2024 22:36:18
Dollar edges up on bets of US growth, inflation
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