Dollar headed for longest winning streak since September 2023

Dollar headed for longest winning streak since September 2023
Greenback set for eighth consecutive weekly gain.
NOV 22, 2024
By  Bloomberg

by Naomi Tajitsu

The dollar is set for its longest run of weekly gains in more than a year, as escalating geopolitical tensions boost demand for the haven currency.

The Bloomberg Dollar Spot Index climbed as much as 0.7% on Friday to the highest level in two years. The gauge is set for an eighth week of gains, the most prolonged rally since September 2023. 

The latest moves came as investors rushed for safe assets amid concern about an escalation in Russia’s war in Ukraine. That compounded a dollar rally that’s been in place since early October, on the view Donald Trump’s potential global tariffs and tax cuts will fan inflation and boost the US economy.

The dollar was benefiting from a “perfect storm of the news which keeps getting better and better from the US side of the equation,” said Michael Brown, senior research strategist at Pepperstone Group in a Bloomberg TV interview.

The greenback’s strength on Friday helped send the euro to the lowest level since 2022. The common currency was also dragged lower by data showing euro-area business activity unexpectedly shrank in November, which led traders to ramp up bets on interest-rate cuts from the European Central Bank.

Solid readings of US manufacturing PMI and consumer sentiment due later in the day may reinforce the view of a buoyant US economy and add to market expectations that the dollar will keep edging higher. A growing number of strategists see a risk the greenback will reach parity versus the euro. 

The dollar’s surge came along with gains in US Treasuries that moved yields further away from recent highs. The 10-year yield fell three basis points to 4.39% after reaching 4.5% last week. 

 

Copyright Bloomberg News

Latest News

What DOGE will risk in cutting the SEC
What DOGE will risk in cutting the SEC

Any government agency, including the SEC, could be made more efficient, lawyers said. But getting rid of knowledgeable staff may have long-term consequences.

Women take the lead in most households' financial decisions, CFP Board finds
Women take the lead in most households' financial decisions, CFP Board finds

New research reveals women's influence in family decision-making, their top financial goals, and how concern for other household members helps shape their priorities.

Creative Planning expands in California with Maxwell Wealth Strategies
Creative Planning expands in California with Maxwell Wealth Strategies

The $345 billion RIA giant is extending its footprint in the West Coast as it lands its first deal for 2025.

Client retention is job number one
Client retention is job number one

Advisors leaning heavily toward fee-based services today enjoy a key competitive edge over commission-based practices – and it all hinges on preserving client loyalty.

Fed's Barr sounds off on risks from AI's speed
Fed's Barr sounds off on risks from AI's speed

The top cop at the Federal Reserve speaks out on possible herding behavior, with economic "gains being realized only by a small group."

SPONSORED Record growth: Interval funds emerge as key players in alternative investments

Blue Vault Alts Summit highlights the role of liquidity-focused funds in reshaping advisor strategies

SPONSORED Taylor Matthews on what's behind Farther's rapid growth

From 'no clients' to reshaping wealth management, Farther blends tech and trust to deliver family-office experience at scale.