The US dollar climbed against its major rivals on Friday to erase some of its losses earlier in the day, as investors anticipated Donald Trumpâs presidential inauguration. The president-elect will give a speech during his inauguration, which could contain hints of his plans for the US economy.
Even though traders avoided taking any major risks ahead of the inauguration ceremony, the greenback still managed to rise as it continued to be supported by comments made by Steven Mnuchin yesterday. Mnuchin, who was chosen by Trump to be his Treasury secretary, said that a stronger dollar is important for the United States on the long term.
Mnuchin was clarifying comments made by Donald Trump in an interview with The Wall Street Journal earlier in the week, in which he said that the US currencyâs strength is negatively affecting exporters. The dollar was trading near its highest level in 14 years ahead of Trumpâs comments.
Traders are anticipating economic policies under Trumpâs administration that would likely support the greenback. The president-elect promised to cut corporate taxes, increase fiscal spending, and reduce financial regulations to support economic growth in the US. These measures could push inflation higher and prompt the Federal Reserve to raise its interest rates.
EUR/USD traded at 1.0655 as of 14:55 GMT on Friday, from 1.0629 at 12:55 GMT, the pairâs lowest level for the day. EUR/USD kicked the day off at 1.0659.
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