Dollar edges up on bets of US growth, inflation
Live MintBy Karen Brettell NEW YORK - The U.S. dollar edged higher on Thursday on expectations the currency would be boosted next year by policies by the incoming Donald Trump administration that are expected to boost growth and lift inflation. Looser business regulations and tax cuts are expected to help propel U.S. growth next year while analysts say that a clamp-down on illegal immigration and the prospect of new tariffs on trading partners could increase price pressures, and weigh on the economy longer term. The U.S. central bank last week cut rates by 25 basis points as expected and Fed Chair Jerome Powell said more reductions in borrowing costs now hinge on further progress in lowering stubbornly high inflation. Money market traders are currently pricing in 35 basis points of cuts next year, implying they see a less than 50% chance that the Fed will make a second 25 basis point reduction.