(Bloomberg) -- The dollar is on pace to post its seventh consecutive weekly gain, its longest winning streak since February, as traders add to wagers that trade and other policies under President-elect Donald Trump will support the US currency.
The Bloomberg Dollar Spot Index rose 1.5% in the week, even after losing some ground Friday. The British pound was among the greenback’s worst-performing peers in the period.
Trump’s win and his promises of sweeping tariffs have fueled the dollar rally, with the currency near its highest level in two years. Meanwhile, Federal Reserve Chair Jerome Powell said on Thursday that there is no rush to lower interest rates, with the US economy performing “remarkably” well. Those remarks, combined with robust economic data on Friday including advances in retail sales, pushed traders to bet on a more gradual interest-rate cutting cycle.
“The dollar will be squarely focused on Trump and his policies,” said Brad Bechtel, global head of FX at Jefferies. “The flows into the dollar have been tremendous and I don’t think they are done yet.”
Traders had positioned themselves ahead of the election for the dollar to rally, according to the latest Commodity Futures Trading Commission data. The CFTC will report on week through Nov. 12 later on Friday.
©2024 Bloomberg L.P.