Dollar edges lower, but hovers near twoyear high
Dour euro zone outlook pressures euro
Traders price in about 45 bps of Fed rate cuts in 2025

SINGAPORE, Jan 3 Reuters The dollar was on track for its strongest weekly performance since early December on Friday, propped up by expectations that the U.S. economy will continue to outperform its peers globally this year and U.S. interest rates will stay elevated for longer.

The greenback began the new year on a strong note reaching a more than twoyear high of 109.54 against a basket of currencies on Thursday as it extended a stellar rally from last year.

A more hawkish Fed and a resilient U.S. economy have led U.S. Treasury yields to rise, prompting the dollar to charge higher.

Coupled with expectations that policies by U.S. Presidentelect Donald Trump will boost growth this year and potentially add to price pressures, the dollar now looks relentless.

Looks like dollar strength is here to stay for now in early 2025 given the U.S. exceptionalism story is here to stay, and it still comes with high U.S. yields, said Charu Chanana, chief investment strategist at Saxo.

Add to that the uncertainty from policies of the incoming Donald Trump administration, and you also get the safety aspect of the dollar looking attractive.

Uncertainties over how Trump39;s plans for hefty import tariffs, tax cuts and immigration restrictions will affect global markets has in turn given the greenback additional safe haven support.

Jobless…