The U.S. dollar hit a nine-month high against major currencies Monday following post-U.S. election fears among investors who expect President-elect Donald Trump to raise spending and lift inflation.
“The message we’ve had so far is that [Donald] Trump’s policies will stimulate growth and inflation which has driven Treasury yields to their highest level since the start of the year,” market analyst Craig Erlam said, The International Business times reported.
The Trump administration has yet to officially reveal any steps it plans to take involving this matter.
“It is probably a good idea to keep riding the dollar higher while the Trump camp has not yet revealed any specific policy steps,” said Masafumi Yamamoto, chief forex strategist at Mizuho Securities in Tokyo, Reuters reported.
“The euro could be more easily exposed to negative pressure amid concerns that the win by Trump, with his anti-globalism agenda, could affect referendums and elections in Italy, Holland and France next year,” he added.
The euro was down 0.6 percent at $1.0793 after being at $1.0773, which is the lowest it’s been since early January, Reuters noted.
However, values could change this week as U.S. Federal Reserve Chair Janet Yellen and other central bank leaders speak at the European Banking Congress on Friday.
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