The dollar is set for its worst performance since 2020
Major indices continued rising buoyed by rate cut optimism while the dollar continued to lose steam.
The U.S. dollar was last seen near 101.46 down from its 20-year peak in September 2022.
Gold prices remain steady near $2065, buoyed by optimism over potential rate cuts and a weaker dollar.
U.S. stocks extended gains into the final week of 2023, while Morgan Stanley continued to rate Tesla as overweight.
On the Market Watch!
The U.S. dollar is set to record its most significant decline against a range of currencies since 2020, driven by expectations of Federal Reserve interest rate reductions that diminish the attractiveness of the U.S. currency compared to other currencies.
The dollar's weakening trend gained momentum following Friday's data, which disclosed a drop in U.S. prices in November, marking the initial decrease in over 3.5 years. Currently, the greenback hovers near 101.466 down from its 20-year peak in September 2022.
Gold prices steadied near $2065 still going hot and heavy on rate cut optimism and a weaker dollar. Cooling US inflation has a triggered long on gold prices amid policy changes in 2024.
Markets expect the yellow metal to shine further when the Federal Reserve starts cutting interest rates with the latest expected verdict pinned in March.
U.S. stocks extended gains overnight, marking the start of the final week of 2023. In light trading following the Christmas holiday, all three major U.S. stock indexes experienced gains, with the S&P 500 reaching its highest intraday level since January 2022. All 11 major sectors on the S&P 500 closed with gains.
In other news, Morgan Stanley continued to rate Tesla as overweight and has set a 12-month price target of $380.00 for the stock. Expecting another challenging year for the EV maker.