The US dollar has climbed for its eighth week straight to the highest level it has been for two years.
Today, the dollar reported a rise of 0.7%, meanwhile the euro dropped to its lowest level since 2022.
The Canadian dollar has also dropped to its lowest level in 5 years, with analysts fearing it will drop below 70 cents US. “I wouldn’t be too shocked if we were to get below 70 cents and even perhaps all the way down to 68 cents at some point,” said Karl Schamotta, Chief Market Strategist of Corpay. “The market momentum is clearly against the Canadian dollar right now. And, you know, that market momentum does tend to build ahead of the inauguration date when new presidents take their office,” Schamotta concluded.
The latest trend favoring the US dollar comes as fearful investors seek safe assets. Rising tensions between Russia and Ukraine have driven investors away from Europe, while Donald Trump’s programmed tariffs and tax cuts are seen as moves to stabilize the US economy.
It is predicted investors will search for value in other regions following this month’s rally in US equities. All eyes are currently on the Federal Reserve and if it will stick to its path to cut interest rates.
By CEO NA Editorial Staff
