US Dollar Headed for Largest Weekly Gainer Since Renminbi Joining SDR

The US dollar is heading for its biggest weekly gain against a basket of major currencies in at least seven years, as investors bet the Trump administration will act to support the greenback.

The dollar index, which measures its strength against a basket of six currencies, rose 0.1% to 94.841 as of 9:13 a.m. EDT, its highest level since Nov. 12, 2016, according to data compiled by Bloomberg. fit. It is up 14% this year and is expected to see its biggest weekly gain since the yuan joined the SDR on October 1, 2018.

The greenback has been in free fall since China joined the basket of SDR currencies in July and has gained 4.1% since then. The gain in the US currency has been the biggest weekly gain since that time. This week will be crucial for the greenback, as investors will keep an eye out for signs that the Chinese currency could come under pressure from their governments, who want to limit the upside. its.