Dollar Soars as Investors Eye Fed Decisions; Euro Struggles Amid Uncertainty

The U.S. dollar reached a 13-month high due to Federal Reserve interest rate expectations and European economic uncertainty. Meanwhile, bitcoin maintained proximity to $100,000, and the euro struggled amid Russian-Ukrainian tensions. The Japanese yen strengthened slightly, as inflation remained above the Bank of Japan’s target.

As investors weigh Federal Reserve interest rate decisions, the U.S. dollar remained at a 13-month high, signifying economic strength in America amid European uncertainties. Bitcoin hovered near the $100,000 mark while the euro faced pressure from geopolitical tensions in Europe.

The dollar index dropped slightly to 107.01, close to Thursday's peak. The Japanese yen held steady against the dollar, benefiting from domestic core inflation staying above the Bank of Japan's 2% goal, potentially setting the stage for increased interest rates.

Meanwhile, global market anticipation focuses on the Fed's December rate meeting, amid discussions about potential fiscal policy changes under President-elect Trump. Meanwhile, the euro steadied after recent declines and sterling saw a slight increase. Bitcoin continued its significant post-election surge.

(With inputs from agencies.)