USD rose on Monday against a basket of world currencies to widen its gains for the eighth day in a row, the longest daily gain since November 2016, hitting a two-month high as US currency purchases continue to be the best in the currency market. Foreign investors, in addition to buying as the best alternative investment amid developments of trade talks between the United States and China.
USD index rose 0.25% to 96.65 points, the highest since December 17, with the opening level of 96.42 points and the lowest level at 96.39 points.
USD index ended Friday’s trading up 0.1%, its seventh daily gain in a row, among the longest daily gain since November 2016.
Over the past week, the dollar index gained 1.1%, its first gain in the last three weeks, and the biggest weekly gain since last August.
Investors are focusing on buying the US currency as the best current investment in the foreign exchange market, especially as negative pressures against major major and minor currencies, especially the Euro and British Pound, are increasing.
Euro is currently facing weak data in Europe, confirming the sharp decline in economic growth since the middle of last year, boosting speculation that the central bank will continue to maintain soft monetary policy and low interest rates to halt the slowdown.
In Britain, the central bank warned that the royal economy may record the lowest growth rate since the global financial crisis in 2009, as well as the global economic slowdown and uncertainty about the country’s secession from the EU.
In Australia, the central bank acknowledged the growing economic risks and opened up the possibility of a rate cut this year. This is a significant shift in the Bank’s bias to long-term emphasis.
Investors are closely watching the development of US-China trade talks, with a new round of talks scheduled to kick off this week focusing on how the Chinese government handles intellectual property rights for US companies.
Officials from the world’s two largest economies are stepping up talks in recent days to reach a comprehensive trade agreement before the March 2 deadline and before the introduction of additional tariffs on Chinese goods.