Dollar Surge: Fed's Plans and Trump's Policies

The U.S. dollar resumed its rally following declining sessions as investors await clarity on Federal Reserve rate plans and Trump's policies. Safe-haven currencies saw a brief boost, but optimism for the dollar persists amid global economic concerns and shifting expectations for interest rate cuts. Bitcoin also surged on regulatory hopes.

The U.S. dollar rose on Wednesday as it reignited a post-election rally, even after a minor decline in recent sessions. Investors are closely monitoring the Federal Reserve's plans on interest rates and the impact of U.S. President-elect Donald Trump's proposed policies.

Despite temporary boosts for safe-haven currencies like the yen and Swiss franc, the dollar index has seen a 3% increase since the election, fueled by a belief that the Fed may slow its rate-cutting path due to inflation concerns linked to Trump's policies.

In markets, key developments also included bitcoin surpassing the $94,000 mark, benefiting from hopes of a favorable regulatory environment under Trump's administration and reports of his social media company's interest in acquiring crypto firm Bakkt.

(With inputs from agencies.)