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News from Fed, Trump pump up the dollar

Investing.com -

Investing.com - The dollar climbed on reverberations from yesterday's Fed news and expectations about economic growth under President-elect Donald Trump.

The exchange rate against the USD/JPY was up, and settled at 118.12, an increase of 0.01%, or 0.01.

The exchange rate against the EUR/USD was up to, settling at 1.0424, up 0.05%.

The GBP/USDexchange rate increased to 1.2421, settling up 0.04%.

Analysts said the greenback was also gaining on anticipation that the new Trump administration's economic plans will go well with the Fed's pace of rate increases and further power the dollar.

The dollar was during intraday trading up 0.79% against the yen at 117.95 yen after clambering as much as 1.4% to 118.66 yen, its highest level since early February, nearly a year ago. The euro was also down 1.09% during intraday trading $1.042 after slipping as much as 1.3% to $1.0396, its lowest in nearly 14 years.

Analysts at Barclays (LON:BARC) Bank, based in New York City and London, believe the euro will reach parity with the dollar by the third quarter of next year, and then to fall below $1.

Analysts at JP Morgan Asset Management, based in New York City, think the two currencies to be equal during the first quarter of next year.

Trump is planning to make a "thank you tour" stop this evening in Michigan, and make additional comments on the economy and his recovery plans.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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