The dollar reached a new high in more than two years against the euro on Thursday, driven by forecasts linked to policies likely to stimulate inflation in the United States.
The American currency increased by 0.23% against the euro, to 1.0332 dollars per euro, after reaching 1.0314 dollars, a peak not seen since the end of November 2022. The greenback also gained 0.51 % against the pound sterling, reaching $1.2453 per pound, after peaking at $1.2435, the highest since April 2024.
“This is simply a continuation of the upward trend in the dollar observed during the second half of last year, particularly after the victory of Donald Trump,” analysts explain.
The US Federal Reserve (Fed) now plans only two interest rate cuts in 2025, compared to four initially projected. On the other hand, analysts anticipate that the European Central Bank (ECB) could cut rates at a faster pace than the Fed, given weak growth in the euro zone and inflation close to the 2% target. set by the ECB.
As for the Bank of England (BoE), markets expect two or three rate cuts in 2025. Meanwhile, the Japanese currency remains stable against the dollar, supported by optimism linked to possible rate hikes by the Bank of Japan (BoJ) in 2025. On Thursday, around 11:55 GMT, the yen was trading almost unchanged, at +0.01% against the dollar, at 157.21 yen.
Belgium
