Dollar Surge Amid Rate Cuts and Crypto Boom

The U.S. dollar advanced against major currencies as markets awaited key central bank meetings. While a Fed rate cut is anticipated, the euro reacted to German political developments. Bitcoin hit record highs following comments from President-elect Donald Trump, suggesting a strategic reserve for the cryptocurrency.

The U.S. dollar made significant strides against leading currencies on Monday, nearing a three-week high. This comes as markets anticipate pivotal meetings by the Federal Reserve and other central banks for insights into future interest rates, with a Fed rate cut by a quarter-point almost certain according to experts.

Eugene Epstein, head of structuring for North America at Moneycorp, noted the dollar's resurgence since September, defying the Fed's recent rate cuts intended to counter inflation and a weakening job market. The dollar strengthened against the Swiss franc and the Japanese yen, while the euro and sterling displayed mixed reactions amid various global economic developments.

Concurrently, Bitcoin saw a surge, reaching a historic peak above $106,000 following President-elect Donald Trump's indication of creating a U.S. bitcoin strategic reserve, similar to the strategic oil reserve. His remarks fueled enthusiasm within the cryptocurrency sector, marking a notable rise in Bitcoin's value.

(With inputs from agencies.)