US Dollar Reaches One-Year High Due to Economic Factors

The U.S. dollar has surged to a one-year high, driven by expectations of fewer Federal Reserve rate cuts and the economic implications of Donald Trump's upcoming presidency. The dollar's strength is reflected in its performance against various currencies, including reaching a historic peak against the Vietnamese dong. Analysts predict that the dollar could continue to rise if it breaks the resistance level of 106, although challenges lie ahead. This rise in the dollar, however, makes U.S. exports more expensive and may complicate trade deficit reduction efforts. Additionally, the dollar's ascent has been influenced by lower-than-expected inflation figures, allowing the Fed greater flexibility in its monetary policy. As global markets react, commodity prices have also reflected concerns, with gold and oil prices declining amid the shifting economic landscape.