Forex analysis today. Greenback is near 14-year high

eur_usd_1On Friday, the evergreen buck held hefty revenues against key currencies, having reached 14-year peaks against the common currency and a broader basket of currencies as financial markets repositioned for a faster pace of rate surges by the major US bank over the next year.

The greenback has been on a tear since the November 8 election of Donald Trump, whose administration is supposed to embark on inflation-stoking stimulus policies including tax drops as well as deregulation.

On Wednesday, the Fed increased interest rates by up to 25 basis point, as widely expected, and also tipped three more lifts in 2017.

The Japanese yen has dropped 11% against the greenback since Trump won the election the previous month, thus eclipsing the 10% drop in the Mexico peso to become the worst performing key currency in that period.

The euro stood still at $1.0427, having plumbed $1.0366 on Thursday, its lowest value since January 2003. It dropped 1.4% so far for the week.

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