Dollar Near Two-Year Peak, Yuan Under Pressure

6 Jan 2025 , 09:29 AM

As traders anticipated a slew of U.S. economic data releases this week, including the December nonfarm payrolls report, for more hints on the Federal Reserve’s rate outlook, the dollar veered close to a two-year peak on Monday.

Prior to the onshore spot market opening, the offshore yuan was last seen trading 0.04% lower at 7.3630 per dollar.

Investors were watching Friday’s highly anticipated U.S. jobs data in the broader market to gain more insight into the state of the largest economy in the world.

In their speeches this week, a number of Fed members are expected to restate previous remarks made by their peers that the battle to control inflation is far from over.

The euro hit its lowest level in almost two years last week as the dollar surged to a two-year high, continuing to gain momentum from predictions of fewer Fed cuts this year.

The dollar index increased 0.09% to 109.06, while the common currency recently traded 0.13% down at $1.0296.

Uncertainty around U.S. President-elect Donald Trump’s upcoming inauguration on January 20 and his proposals for significant import tariffs, tax cuts, and immigration restrictions also gave the dollar more safe-haven support.

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