Dollar falls to end worst year since 2003, bitcoin soars
The dollar fell to its lowest in over three months against a basket of major currencies on Friday, marking its steepest annual drop since 2003, on doubts over durability of a pickup in U.S. economic growth in wake of last week’s tax overhaul, APA reports quoting Anadolu Agency.
One of the most dramatic market developments in 2017 was the breath-taking rise of bitcoin BTC=BTSP and other cryptocurrencies. While they have pulled back at year-end, many of these digital currencies have surged in value this year.
The greenback may lag further against its peers in 2018 as investors expected other major central banks to reduce their stimulus while the Federal Reserve has signaled it would raise interest rates further, analysts said.
“The dollar will face more headwinds in 2018,” said Chris Gaffney, President of World Markets at EverBank in St. Louis, Missouri. “The Fed won’t be going at it alone in terms of taking off more gas from the stimulus pedal.”
Bets the European Central Bank might consider raising interest rates by the end of 2018 due to evidence of higher inflation and business activity in the euro have lifted the euro, which was poised for its best yearly performance versus the greenback in 14 years.
The euro hit a three-month peak at $1.2028 EUR=, bringing its annual gain to 14.2 percent. It was last up 0.56 percent at $1.2008.
The euro’s rally was a drag on the greenback in 2017. The index that tracks the dollar versus the euro and five other major currencies .DXY fell as low as 92.080, which the lowest since Sept. 22. It recorded a 9.8 percent annual decline, the biggest yearly loss since 2003.
The dollar also weakened against the yen JPY=, sterling GBP=D4, Canadian dollar CAD=D4, Swedish crown SEK= and Swiss franc CHF=, which are the other index components this year.
The dollar index was at a 14-year peak at the start of 2017 on hopes for U.S. President Donald Trump’s pro-growth economic agenda. Barring the most dramatic rewrite of the U.S. tax code in 30 years enacted last week, Trump and Republican lawmakers have struggled to pass legislation.
Furthermore, many institutional investors close their books at the year-end, a deadline for taxation and performance reporting, a time seen leading to dollar selling pressure, analysts said.
Outside of traditional currencies, bitcoin and other cryptocurrencies rebounded after two days of losses tied partly to more regulators toughening rules on digital currencies in a bid to curb excessive speculation.
Related news releases
- 17.07.2018Azerbaijan to switch to floating manat rate regime in 2020
- 17.07.2018Anglo Asian Mining earns $14M from sale of gold
- 17.07.2018Oreshkin: Russia-Azerbaijan trade turnover increased by 21% in five months
- 17.07.2018Azerbaijan to establish Competition Authority
- 17.07.2018Xalg Bank ends Q2 on profit
- 17.07.2018USD rate at today's auction announced
- 17.07.2018SOFAZ transfers AZN 84.5B to state budget since 2003
- 16.07.2018Azerbaijan Industry Bank ends Q2 on profit
- 16.07.2018Turan Bank’s gets 13% decline in deposit portfolio
- 16.07.2018Azerbaijan announces manat rate for July 17
- 16.07.2018Central Bank announces result of today’s auction
- 16.07.2018IBA strengthens its capital position
- 13.07.2018Central Bank of Azerbaijan to attract AZN 350M
- 13.07.2018Payments on insurance against industrial accidents amounts to AZN 1.8M
- 13.07.2018Premiums on real estate compulsory insurance increase
- 13.07.2018Azerbaijan sees rise in compulsory insurance of automobiles
- 13.07.2018Azer Turk Bank offers free salary cards to corporate clients
- 13.07.2018Azerbaijan-based insurers ranking for payment growth rate in H1
- 13.07.2018Investments in Azerbaijan’s fixed capital decline by 14%
- 13.07.2018Kapital Bank’s assets in Q2 make up AZN 3.5B
- 13.07.2018Azerbaijan-based insurers ranking for premiums growth rate in H1
- 13.07.2018Azerbaijan-based insurers ranking for ratio of payments to premiums in H1
- 13.07.2018Azerbaijan-based insurers ranking for market share of premiums in H1
- 13.07.2018Azerbaijan-based insurers ranking for payments in H1
- 13.07.2018Azerbaijan-based insurers ranking for premiums
- 13.07.2018Azerbaijan-based insurers’ premiums exceed AZN 396M
- 13.07.2018Official Exchange Rates
- 12.07.2018Georgia’s debt to Azerbaijan declines
- 12.07.2018EBRD increases its share in Unibank
- 12.07.2018Nakhchivanbank ends Q2 on profit
- 12.07.2018State Customs Committee increases budget transfers by 38%
- 12.07.2018Azerbaijan’s positive balance from foreign trade turnover doubles
- 12.07.2018Azerbaijan triples car import
- 12.07.2018London-Mumbai flight makes emergency landing in Baku
- 12.07.2018BSE turnover increases by 2.7-fold
- 12.07.2018Pasha Capital heads brokers ranking for June
- 11.07.2018Bank Melli Iran Baku sees decline in loan portfolio
- 11.07.2018Azerbaijan exports products to 95 countries in five months
- 11.07.2018Average monthly salary in Azerbaijan increases by 4%
- 11.07.2018British law firm shuts down its Azerbaijan-based office
- 04.01.2018Azerbaijan exports 460 million tonnes of oil to world markets
- 04.01.2018ADIF addresses Demirbank’s creditors
- 05.01.2018Central Bank won’t make examination of unregistered currency units
- 29.12.2017Central Bank announces result of today’s auction
- 29.12.2017Payment of compensation on Demirbank’s insured deposits to start from February 1, 2018
- 29.12.2017Shahdag Tourism Centre ends 2017 on profit