Dollar Gains Ground Amid Trump Support

The U.S. dollar has gained strength, buoyed by supportive comments from President-elect Donald Trump, signaling a potential shift away from his previous stance favoring a weaker dollar to address the trade deficit. The dollar's rise has negatively impacted the Chinese yuan, which has hit a three-month low against it. Additionally, the dollar has climbed approximately 0.5% against the yen, overshadowing remarks from Bank of Japan Governor Kazuo Ueda regarding upcoming interest rate hikes. Market expectations suggest a 65% chance of a BOJ rate increase at its December meeting. Meanwhile, the Federal Reserve is anticipated to cut rates, with forecasts indicating a rebound in U.S. jobs for November, although the jobless rate may increase slightly. The European Central Bank is also facing pressure, with expectations of a rate cut in mid-December amid political tensions in France.