Dollar eases; remains near twoyear high
Yen loiters near fivemonth lows; fresh off 10 drop last year
Investors brace for U.S. rates staying higher for longer
Markets await incoming Trump administration policies

SINGAPORE, Jan 2 Reuters The U.S. dollar wobbled at the start of 2025 trade on Thursday after a strong year of gain against most currencies, with the yen anchored near its lowest level in more than five months as investors ponder U.S. interest rates staying higher for longer.

Market focus early in the year will be on the incoming Trump administration and its policies that are widely expected to not only boost growth but also add to price pressure. That will underpin U.S. Treasury yields and boost dollar demand.

A wide interest rate difference between the U.S. and other economies has cast a shadow over the foreign exchange market over the past year, resulting in most currencies declining sharply against the dollar in 2024.

None more so than the yen , which slid more than 10 in 2024 for its fourth year of decline. It was little changed on the first trading day of 2025 at 157.10 per dollar, not far from the fivemonth low touched on Tuesday, keeping traders wary of intervention from Japanese authorities.

Markets in Japan are closed for the rest of the week.

The dollar index , which measures the U.S. currency against six others, eased 0.2 to 108.32 on Thursday but remained close to the twoyear high touched on Tuesday. The index rose 7 in 2024 as traders…