The year 2024 begins with an increase in the value of the dollar, while the yen suffers its biggest loss.

The dollar rose on the first day of trading in the new year, as attention turned to economic data released this week that may provide clues to the upcoming moves of the Federal Reserve. Meanwhile, the price of Bitcoin rose above $45,000 for the first time since April 2022.

In 2023, the dollar index, which measures the performance of the US currency against six competitor currencies, witnessed a decline of 2%, ending a two-year streak of gains. The index recorded 101.44 in the latest trading session, rising by 0.059%, amid investors evaluating the possibility of the Federal Reserve lowering interest rates this year.

The Japanese yen has suffered the most damage from the rise of the dollar, as the Asian currency declined by 0.35% to 141.36 yen to the dollar, after the yen fell by 7% in 2023.

According to a tool by CIMB, the markets are now expecting an 86% reduction in interest rates by the US Federal Reserve starting in March. They also anticipate a decrease in interest rates by more than 150 basis points this year.

The focus now shifts to a number of economic data scheduled for release this week, including job vacancy and non-farm payrolls data. The latest minutes from the Federal Reserve’s meeting held in December will also be released on Thursday, providing an insightful view into the central bank officials’ thinking on interest rate cuts this year.

The euro declined by 0.13% to $1.103, moving away from its five-month high of $1.11395 touched last week. The European currency rose by 3% last year, marking its first annual increase since 2020.

The British pound increased in the latest trading session to $1.2729, rising by 0.05% during the day, after recording its strongest performance since 2017 last year with a 5% increase. However, the weak economy and the uncertainty surrounding the elections make a repeat of this performance unlikely.

On the other hand, the Australian dollar rose by 0.35% to 0.68335 dollars. The New Zealand dollar remained stable at 0.63155 dollars.

The world of cryptocurrency began with a strong leap, as Bitcoin touched its highest level in 21 months at $45,532 amid growing expectations that the US Securities and Exchange Commission will soon approve the listing of Bitcoin exchange-traded funds.