Dollar price today, December 30: Exchange rates in Honduras, Mexico, Guatemala, Nicaragua…

Admin December 31, 2023 Business Leave a comment 175 Views

Financial markets are officially closed. During the last day of operations, Dollar Index (DXY), Which is used to measure the strength of the greenback against a basket of the six most relevant currencies globally. A marginal increase of 0.15% was recorded and traded at 101,060 units, according to data of investment.com,

The dollar has registered its first annual decline since 2020

Although the dollar surged during the final hours of market closing, This was not enough to overcome the bad situation suffered throughout December. After that, the American currency Annual decline of more than two percentage points, break up with The two-year winning streak marked the first decline since 2020.

Fed’s cuts have affected the dollar

In the last month, The dollar fell due to rising expectations that the US Federal Reserve (Fed) will end the cycle of interest rate hikes and start cutting rates next year. As inflation softens. For this reason the market is now eyeing it When will the cuts begin and what impact will they have on inflation, pointing to a new quality of the dollar.

,Market expects US cuts to happen first And they have less confidence that the European Central Bank will do it so quickly, That is why the dollar is very weak. We also have a positive risk appetite, which is Another downside for the dollar. Waiting for 2024, Dollar weakness will be a topic at the central bank’s March meeting, According to statements collected by Nordea Chief Analyst Niels Christensen explains investment.com,

The probability of the Fed leaving interest rates unchanged in January is 83.5%Whereas The remaining 16.5% suggest the Central Bank may start cutting as soon as next monthAccording to estimates from CME’s FedWatch tool.

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