US Dollar posts gains against global currency counterparts

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US Dollar posts gains against global currency counterparts

The American dollar trader higher on Friday, reaching a near 16-month high. The dollar received a boost, after dipping post the results of the midterm elections, on account of the Federal Reserve cautioning that it would be hiking interest rates again in December 2018.

Societe Generale's chief forex analyst Kit Juckes told Reuters, "We’re wary of selling the dollar too soon, because the Fed is still hiking rates into a tightening labor market and trade tensions haven’t gone away."

Juckes also mentioned that potentiality of a trade agreement being signed between the US and China during November's G20 summit has also helped the dollar. "The U.S.-Chinese wars of words go on, and the idea that a trade deal is almost done and will be rubber-stamped (at the G20) in Buenos Aires seems very optimistic."

The Euro traded lower by around 0.1% against the dollar at about 1.13, while the Pound Sterling fell by around 0.3% and was trading at around 1.30. The Australian dollar was also weaker against its American counterpart as it fell by about 0.2% and was trading lower at 0.72 against the US dollar. The Japanese yen, meanwhile, posted a relative high against the dollar as it traded at 111.86, gaining about 0.2%.