Reuters reported that the US dollar index recorded its smallest annual move ever in 2019, adding 0.24%, indicating that trade hopes and investor confidence in dwindling demand for the currency, which is a safe haven.
Where the British pound, the euro, and a handful of sensitive currencies witnessed a rise in trade, with the dollar falling to its lowest level in 6 months yesterday, as it supported risk appetite thanks to investor optimism about global growth and stage 1 of the US-China trade agreement.
Yesterday, US President Donald Trump announced that the first phase of the agreement would be signed on January 15 at the White House, although there was still some confusion over the details of the agreement.
The dollar index fell 0.33% in its latest reading to 96.418, continuing the decline for the fourth consecutive session and recording its weakest level since the first of July.
The trade agreement reached earlier in December caused the dollar to decline 1.89% over the past month.
It is worth noting that the performance of the dollar is strong before December, thanks to the superior performance of the American economy and a long period of uncertainty regarding the negotiations between Washington and Beijing.
Mitsubishi UFJ analysts said, “The dollar’s weakness near the end of this year coincided with a renewal of the Fed’s easing and pessimism about global growth expectations.” In the last sessions of the year, the dollar was only 0.24% higher for 2019, compared to 4.4% In 2018. At the end of November, the index was 2.18% up for the whole year.
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