AIRLINK 184.71 Increased By ▲ 0.85 (0.46%)
BOP 12.12 Increased By ▲ 0.30 (2.54%)
CNERGY 7.50 Decreased By ▼ -0.02 (-0.27%)
FCCL 47.52 Increased By ▲ 1.14 (2.46%)
FFL 16.15 No Change ▼ 0.00 (0%)
FLYNG 28.51 Increased By ▲ 0.73 (2.63%)
HUBC 141.58 Increased By ▲ 6.49 (4.8%)
HUMNL 13.18 Increased By ▲ 0.12 (0.92%)
KEL 4.63 Increased By ▲ 0.01 (0.22%)
KOSM 6.31 Increased By ▲ 0.11 (1.77%)
MLCF 60.37 Increased By ▲ 1.20 (2.03%)
OGDC 225.48 Increased By ▲ 2.42 (1.08%)
PACE 6.07 Increased By ▲ 0.28 (4.84%)
PAEL 48.14 Increased By ▲ 3.19 (7.1%)
PIAHCLA 18.27 Increased By ▲ 0.61 (3.45%)
PIBTL 11.05 Increased By ▲ 0.39 (3.66%)
POWER 11.83 Increased By ▲ 0.10 (0.85%)
PPL 189.65 Increased By ▲ 2.60 (1.39%)
PRL 36.36 Increased By ▲ 0.09 (0.25%)
PTC 24.52 Decreased By ▼ -0.25 (-1.01%)
SEARL 102.92 Increased By ▲ 1.97 (1.95%)
SILK 1.15 No Change ▼ 0.00 (0%)
SSGC 36.73 Decreased By ▼ -0.23 (-0.62%)
SYM 15.71 Increased By ▲ 0.02 (0.13%)
TELE 8.11 Increased By ▲ 0.23 (2.92%)
TPLP 11.26 Increased By ▲ 0.43 (3.97%)
TRG 70.31 Increased By ▲ 3.69 (5.54%)
WAVESAPP 11.16 Increased By ▲ 0.34 (3.14%)
WTL 1.40 Increased By ▲ 0.07 (5.26%)
YOUW 3.78 Decreased By ▼ -0.03 (-0.79%)
BR100 12,602 Increased By 143.7 (1.15%)
BR30 39,293 Increased By 986 (2.57%)
KSE100 117,974 Increased By 972.9 (0.83%)
KSE30 36,496 Increased By 361.4 (1%)

NEW YORK: The US dollar hit a two-year high on Thursday in the first day of 2025 trading, building on last year’s strong gains on expectations US growth will beat peers and keep US interest rates relatively elevated.

The Federal Reserve has indicated that it will be more cautious in cutting interest rates as inflation remains stubbornly above its 2% annual target and the economy remains strong.

Policies by US President-elect Donald Trump are also expected to boost growth and potentially add to upward price pressures.

“In terms of 2025 economic growth, there’s no rival to the dollar,” Adam Button, chief currency analyst at ForexLive in Toronto, said.

“Capital flows dominate the turn of the year and the US stock market has really put to shame every other global market,” Button added. “The dollar is the only game in town until there is a genuine stumble in the US economy.”

Data on Thursday confirmed a still solid jobs market. The number of Americans filing new applications for jobless benefits unexpectedly fell last week, pointing to low layoffs at the end of 2024.

The dollar index was last up 0.29% on the day at 108.85.

The euro fell as low as $1.0306, its lowest since November 2022, and was last down 0.4% on the day.

Traders anticipate deep interest rate cuts from the European Central Bank in 2025, with markets pricing in at least four 25-basis-point cuts, while not being certain of even two such moves from the Fed. Sterling, which held in better than most major currencies against the greenback last year, fell 0.98% to $1.2394, its lowest since April. Its fall accelerated after it broke through resistance around $1.2475.

The dollar gained 0.03% to 156.92 Japanese yen.

The Aussie was 0.39% higher at $0.6215. The kiwi rose 0.25% to $0.5609.

In cryptocurrencies, bitcoin gained 2.05% to $96,723.

Comments

Comments are closed.