 Dollar started the week on strong footing, buoyed by a combination of technical factors and geopolitical developments. Technically, the greenback bounced after failing to break through near-term support level against Euro last week. Escalating political and trade tensions is giving further fuel to Dollar's rise. Over the weekend, US President-elect Donald Trump stirred market attention with a direct demand to BRICS nations, calling for a halt to any plans for a new currency alternative to Dollar. Trump warned on social media that such moves would trigger "100% tariffs" and potentially end these nations’ ability to sell into the "wonderful US economy", underscoring his intent to preserve the "mighty US dollar" as the dominant global currency. Adding to Dollar's momentum, reports indicate that the US is launching Biden administration's final large-scale efforts on China's semiconductor industry. According to sources cited by Reuters, the new measures include restricting exports to 140 Chinese companies, imposing curbs on shipments of high-bandwidth memory chips critical for AI training, and limiting advanced chipmaking tools and software. The initiative, targeting sectors critical to artificial intelligence and military advancements, underscores ongoing US-China trade tensions, which persist across multiple administrations.... |
