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US Dollar Set for Sharp Drop
Friday, 29 November 2024 10:12 WIB | US DOLLAR |DOLLAR

The dollar index dropped below 106 on Friday, on track to lose about 1.5% for the week, marking its first weekly decline in nine weeks.

The initial pullback was sparked by the nomination of Scott Bessent as US Treasury Secretary, which provided markets with a sense of stability and eased concerns over drastic policy shifts under the incoming Trump administration.

The decline gained momentum on Wednesday after US PCE inflation data met expectations, signaling little change in the Federal Reserve's stance on interest rate cuts.

Markets are now pricing in a 66.5% chance of a 25 basis point rate cut in December, up from 55.9% a week ago.

Despite this week's drop, the dollar index is still poised to rise around 2% for November, as Trump's decisive election victory fueled bets on fiscal expansion, higher tariffs, and tighter borders—policies that could be inflationary.

Source: Trading Economics

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