Dollar Slips Ahead of Trump Inauguration
Date: 2025-01-20 Author: Кирило Загоруйко Categories: ECONOMY
The dollar slipped against most major currencies in the hours leading up to Donald Trump's second inauguration.
Bloomberg's dollar gauge fell 0.3% on Monday, Jan. 20, as Trump's call with Chinese President Xi Jinping on Friday, Jan. 17, helped ease concerns about a trade war between the two countries. Low liquidity due to the U.S. holiday likely exacerbated the dollar's weakness against everything from the Australian dollar to the offshore yuan.
"We're all waiting for the big event — the speech and executive orders," said Rodrigo Catril, a strategist at National Australia Bank Ltd. in Sydney. "Liquidity is tight and price action signals should be treated with caution."
The currencies of New Zealand and Australia, often seen as indicators of risk sentiment, rose against the dollar on Monday. The South Korean won, another currency sensitive to global trade and growth, led the Asian rankings.
“Markets have been buoyed by the encouraging conversation between Trump and Xi,” said Carol Kong, a strategist at the Commonwealth Bank of Australia. “Markets appear to be placing a lot of hope in policy announcements this week. The risk is that President Trump fails to deliver on his promises, further weakening the situation.”
