Odaily Planet Daily reported that the US dollar index rose to a two-year high as the market expects the Federal Reserve to adopt a more cautious approach to interest rate cuts in 2025. The market is betting that President elect Trump's policies, including proposed trade tariffs and tax cuts, will exacerbate inflation and limit interest rate cuts. Mohammed Saraf of Danske Bank stated in a report that "due to the resilience of the US economy, the market currently expects no more than two 25 basis point rate cuts throughout the year, which will support the US dollar." In December last year, the Federal Reserve also hinted at slowing down the pace of rate cuts. (Golden Ten)
