Nov 20, 2024 (MENAFN via COMTEX) --
(MENAFN) The US dollar fell to a one-week low against other major currencies on Wednesday, continuing its three-day decline from a peak earlier in the week. The market took a pause after the volatile rally triggered by Donald Trump's election as president. The dollar's retreat was further impacted by global developments, particularly concerning geopolitical tensions.
Despite some initial overnight support for the dollar and other safe-haven currencies like the yen, the optimism quickly faded. This shift followed remarks from Russia's foreign minister, who stated that Moscow would do everything in its power to avoid a nuclear conflict. This came just hours after Russia had eased the conditions for launching a nuclear strike, adding to global uncertainties.
In the cryptocurrency market, Bitcoin surged to a new high, surpassing USD94,000, as investors anticipated a more crypto-friendly regulatory environment under the incoming Trump administration. This optimism helped propel the price of the leading digital asset to new heights.
The US dollar index, which tracks the greenback against six major currencies including the euro and the yen, dropped to 106.07 points, marking its lowest level since the previous Wednesday. It slightly recovered to 106.18 points by 0247 GMT. Last week, the index had reached a one-year high of 107.07 points, fueled by expectations that Trump's fiscal policies--such as increased government spending, higher tariffs, and stricter immigration laws--could push inflation higher and potentially slow down the Federal Reserve's monetary easing. Investors are now closely watching Trump's choice for Treasury Secretary, following the announcement of several other key cabinet appointments.
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