US Dollar holds strong, other currencies see drop in value as year ends


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US Dollar holds strong, other currencies see drop in value as year ends

The US dollar continued to hold its ground against other currencies on the last day of 2018 even as the trade stand-off between the US and China continued to rock the dollar and the global economy for a long time. However, if it were to be expected that 2019 would help the dollar's cause, experts have cautioned otherwise.

The Federal Reserve's not being keen on increasing key rates in 2019, has already weighed the prospects of the dollar surging down. According to Alvin Tan, Societe Generale's currency analyst, as quoted by Reuters, "Along with growing expectations of no more rate hikes, the familiar issues of the twin deficits is expected to weigh on the dollar next year."

As regards other currencies, the Australian dollar gained 0.4% against its American cousin and was trading at around $0.70. But, overall, for the year, the AUD had lost around 10% of its value against the US dollar. The Euro was trading at around $1.14 against the dollar.

Given the rollicking the European Union has seen this year, analysts have stated that the Euro's value against the US dollar for 2018 could slump by around 5%. Lastly, while the British Pound rose by around 0.3% against the US dollar on Monday, and was trading at $1.27, the Pound Sterling had seen a drop of around 6% in its value against the dollar.