Dollar stays near two-year high, stocks struggle
SINGAPORE/LONDON (Reuters) -The dollar dipped but stayed close to a two-year high against a group of peers on Friday on investor bets the gap between growth in the U.S. and elsewhere will widen, while Chinese blue chips suffered their biggest weekly fall since 2022. "If a currency’s valuation is an expression of the degree of confidence in the growth outlook relative to other economies, it is a damning assessment of how the market reads the euro zone outlook versus that of the U.S. in 2025," said Kenneth Broux, head of corporate research FX and rates at Societe Generale. The U.S. currency rallied late last year as investors bet President-elect Donald Trump's policies would drive growth and inflation, meaning fewer further rate cuts from the Federal Reserve and higher yields on U.S. Treasuries, when European central banks are set to keep cutting rates.
