The Dollar Index Reaches New Heights
The dollar index, which measures the value of the greenback against a basket of major currencies, has established itself at 108.05 points, after recently reaching a peak of 108.27 points. The US dollar continues to dominate the financial markets, reaching levels close to its two-year high.
This upward trend is supported by the recent announcements from the Federal Reserve (Fed), indicating a slowdown in interest rate cuts expected for 2025.
If this trend persists and the currency reaches too high a level, other countries will face greater difficulties in exporting, as prices of products will have increased for their partners. On the other hand, a "weak" currency will favor exports in the short term.
There are many major factors influencing the US dollar exchange rate, including economic performance, supply and demand for currencies, inflation, and geopolitical factors.
