The bright opening of 2025, the US dollar excelled in trading yesterday Wednesday following the strengthening pattern that had begun to appear the previous day.
The king of currencies has once again maintained its position at a 2-year high and is expected to continue to put pressure on other major currencies in the market in early January.
The strengthening situation of the US dollar has been expected, following the Federal Reserve (Fed)'s signal to slow down their policy easing after this.
Interest rate cuts are expected to be done only twice this year after policymakers assess the resurgence of inflation figures in addition to the US (US) economic growth which is still seen as strong.
With that, interest rates in America will continue to remain at high levels and support the dominance of the US dollar in the market.
After banks closed operations yesterday Wednesday in conjunction with the New Year celebration, trading at the end of the week is likely to return to being lively.
However, investors remain cautious with warnings of a volatile market situation as seen in late 2024 trading.
Looking at the US dollar, the DXY index remains at a 2-year high, hovering around 108.50 points.
Meanwhile, the US 10-year treasury yield rose to around 4.58%, which still shows a positive signal for the US dollar.
Weekly data on US unemployment claims will be watched in the New York session tonight.
