Dollar index hits four-month high – Trump's victory proved to be damaging for currencies of other countries, including Indian
Washington, Donald Trump's victory in the US presidential election has proved to be detrimental to the currencies of other countries including India. With the reports of Trump's victory, the rupee fell by 15 paise against the dollar and reached the all-time high of 84.25.
The dollar index rose 1.9 percent to a four-month high of 105.30 on Wednesday, with signs that Donald Trump's victory and his inflationary policies will boost the dollar. Other Asian and European currencies weakened as a result.
The dollar index has been under pressure for some time due to election uncertainties. The US 10-year yield also increased by 17 basis points and reached the level of 4.44 percent. Which will increase the pressure on the rupee.
The US Fed may announce a rate cut by the end of this week. Economists have expressed the possibility that the US Fed will cut interest rates by 100 basis points for 2025.
With the victory of Donald Trump, who works in an aggressive mood, Iran's currency has also fallen to the bottom against the dollar. The Iranian Rial has hit a historic low of 703,000 against the dollar. Trump's victory in the US, considered a supporter of Israel, has sent currencies rumbling on fears of adverse effects on Iran. In other Asian currencies, Japan's yen has fallen by 1.54 percent, Singapore dollar by 1.19 percent, Thailand's Thai baht by 1.64 percent, China's yuan by 0.74 percent.
