U.S. Dollar Ends 2024 Strong, Driven by Fed Policy and Trump Administration Expectations

The dollar reached a two-year high as higher U.S. yields and economic policies under President-elect Donald Trump bolstered its position against major currencies.

The U.S. dollar index rose 6.6% in 2024, supported by strong Treasury yields and expectations of limited Federal Reserve rate cuts next year.
President-elect Donald Trump's anticipated policies, including tax cuts, deregulation, and tariff hikes, are expected to drive growth and inflation, keeping U.S. yields elevated.
The Japanese yen weakened significantly against the dollar, falling 10.6% this year, with intervention from Japanese authorities being closely monitored.
The euro and British pound also declined against the dollar, with the euro down 5.5% and the pound down 1%, as diverging central bank policies influenced currency performance.
Bitcoin surged 120% in 2024, reaching a record high of $108,379 in December, though it has since settled near $93,800.