The USD continues to see a rise in value early on in 2018. A weekly roundup of the forex markets revealed the U.S. dollar had gained against other major currencies. The growth does come as a bit of a surprise after the nation experienced slow job growth at the beginning of the year, and the dollar dipped to three-month lows.
USD’s Strong Performance
A good showing for the dollar was forecasted by experts heading into the new year. President Donald Trump’s new tax plan was expected to breathe new life into the currency. While that theory has been proved correct thus far, most did not expect such gains from the dollar right away. The Federal Reserve interest rate increases have yet to hurt the currency in the early portion of the year.
The dollar’s index versus the major currencies went up .1 percent on Monday. This performance came just a week after the dollar hit its lowest level since mid-September. To say the dollar’s gain this week is a welcomed sign would be a giant understatement. In fact, the USD is coming off its worst year since 2003. Most experts have pointed to the rise of Bitcoin as a reason why the dollar began to plummet. It didn’t help the dollar’s cause that the euro saw a surge at the end of 2017 as well.
China’s Forex Reserves
Value rose at a historic level for China’s foreign reserves at the end of 2017. The reserves grew at its fastest rate in more than a calendar year thanks in large part to a strong performance from the yuan. A look at the year-end numbers shows incredible growth for the reserves. In just the month of December, it rose from approximately $20 billion to more than $3 trillion. It’s the first overall rise in value for the reserves in three years. More forex analysts believe the reserves will see steady growth in 2018, rather than large gains.