Trump’s anticipated election victory and a strong economy clearly strengthened the dollar

of the United States the dollar strengthened considerably in October, because the economy is in good shape and the securities market Donald Trump’s is believed to win the presidential election next week.

The index, which measures the value of the dollar in relation to many other currencies, strengthened by 3.2 percent in October. It was the most since April 2022.

economist estimate that the strengthening of the dollar reflects signs of economic strength.

The annual growth rate of the US economy was 2.8 percent in July–September. This means that the economy grew by 0.7 percent from the previous quarter.

In addition, according to investors, increased expectations of Trump’s election victory have increased the attractiveness of the dollar, the Financial Times writes.

The latest according to opinion polls, Trump and the Democratic candidate Kamala Harris are approximately equal.

If Trump wins the election and his promised tariffs and tax cuts are implemented, it would likely increase inflationary pressures. This, in turn, could mean that the central bank is unlikely to cut its key interest rate very quickly.

The central bank cut its key interest rate by 0.50 percentage points in mid-September. It was larger than the usual rate cut of 0.25 percentage points.

The last time the central bank cut its key interest rate was in March 2020, when the coronavirus pandemic escalated and there were serious disruptions in the global economy.