Dollar Holds Steady as Bitcoin Hits New Highs Amid Central Bank Anticipations

The U.S. dollar remained strong against major currencies due to expectations of a rate cut by the Federal Reserve. Bitcoin reached an unprecedented high as speculation grew over a U.S. strategic bitcoin reserve under President-elect Trump. Uncertainty surrounded major global currencies amid various central bank meetings.

The U.S. dollar held close to a recent three-week high against other major currencies on Monday. This stability comes as markets anticipate a rate cut by the Federal Reserve during upcoming central bank meetings, alongside a measured pace of interest rate easing predicted for 2025.

Bitcoin experienced a surge, surpassing $106,000 for the first time, spurred by indications that President-elect Donald Trump might establish a strategic bitcoin reserve. The euro suffered slight losses following Moody's unexpected downgrade of France, and the yen struggled post its significant weekly decline.

As global currencies navigate the impact of central bank policies, analysts caution that potential inflationary pressures must be managed, particularly as the U.S. economy shows resilience to high interest rates and with Trump's impending presidency triggering speculations around crypto strategies.

(With inputs from agencies.)