Dollar Peaks as Fed Speculations and Bitcoin Surge Persist

The dollar reached a 13-month peak driven by positive U.S. labor data and anticipations over the Federal Reserve's interest rate trajectory. Meanwhile, Bitcoin inches toward $100,000 amid regulatory changes, with investors eyeing potential rate cuts as Fed officials suggest a slower path forward.

The dollar soared to a 13-month high amid erratic trading Thursday, reacting to fresh labor market data and remarks from Federal Reserve officials that may guide future interest rate changes. Weekly jobless claims decreased by 6,000 to 213,000, hitting a seven-month low and defying economists' predictions of 220,000, signifying a labor market rebound disrupted last month by hurricanes and strikes.

This report also pointed to labor market slack, with unemployment rolls surging to a three-year peak, offering the Federal Reserve leeway to cut rates once more in December. Bitcoin's rally persisted, with the cryptocurrency climbing over 40% since the U.S. election as speculation mounts that President-elect Donald Trump will ease crypto regulations. Bitcoin surged 4.23% to $98,458, approaching a record high.

Federal Reserve discussions suggest a tempered approach to rate reductions. Details from Fed Chair Jerome Powell indicate a cautious strategy amid inflation concerns spurred by potential Trump policies that have likewise aided the dollar, which touched a 107.15 high - the steepest since early October. The ever-changing market dynamics underscore investor scrutiny on global economic trends.

(With inputs from agencies.)