By John McCrank
NEW YORK, December 31 – The dollar index fell in calm year-end trading on Friday, but will end 2021 with a gain of nearly 7%, with investors betting the Fed will hike rates ahead of other major economies in a context of increasing inflation driven by post-COVID -19 stimulus initiatives.
* The dollar index, which measures the greenback against six major rivals, fell 0.289% to 95.729.
* On track to achieve its best year since 2015, the dollar was supported by an improving US economy and persistent inflation which caused an aggressive turn by the Fed, which is now expected to start raising interest rates from Of March.
* The best performance of major currencies against the dollar in 2021 was for the loonie, which remained stable throughout the year, helped by expectations that the Bank of Canada will begin to tighten monetary policy in January.
* Among the major currencies, the worst performing against the dollar was the Japanese yen, which has lost around 10% this year.
* The euro, which is the largest weight in the dollar index, lost just over 7% in 2021, with Scotiabank analysts predicting the European Union’s currency to weaken in the year next.
* The euro fell around 6% on the year against the pound sterling as concerns in Britain over the economic impact of the pandemic boosted the UK currency, and analysts expect further rate hikes from the Bank of England in 2022.
* While the pound sterling was at its highest against the euro since February 2020, it fell just over 1% against the dollar over the year.
* On Friday, the euro was up 0.33% to $ 1.1362, while the pound was up 0.21% to $ 1.3527. The yen lost 0.03% to 115.075 per dollar.
* In cryptocurrencies, bitcoin rose 1.66% to $ 47,931.97, ending the year with a gain of around 65%, well below its November peak of $ 69,000.
(Edited in Spanish by Juana Casas)
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