The U.S. dollar is on track to post its best annual performance in nearly a decade, bolstered by a robust economy and rising demand.
All the currencies of developed countries have shown a decline against the greenback, notes the specialized agency Bloomberg, which reports that the dollar has gained 7% since the start of the year, its best performance since 2015.
In early December, the dollar reached its highest level in more than two years, following the Federal Reserve's decision to lower interest rates, despite a slight slowdown in the pace of monetary easing.
“The main support for the dollar this year has been the strength of the economy,” Skylar Montgomery Koning, a currency specialist at Barclays, said as quoted by Bloomberg.
The strength of the American economy should encourage the central bank to begin a cycle of more moderate rate cuts “thus helping to maintain historically high dollar valuations,” she explained.
In 2024, the Japanese yen, Norwegian krone and New Zealand dollar were the worst performing currencies in the basket of top 10 currencies, with each seeing a fall of more than 10% against the greenback.
For its part, the euro lost around 5.5% of its value to trade at nearly 1.04 dollars, while more and more observers do not rule out the possibility of seeing the common currency reach parity with the dollar in 2025.
With MAP
