Global central banks cut rates to tackle inflation, US dollar was strongest currency

From Investing.com: 2024-12-24 07:03:00

The year 2024 saw global central banks tackle inflation by cutting rates after keeping them high in 2023, causing exchange rate fluctuations. Political uncertainty and instability lingered, with elections in various countries affecting economic policies. The US dollar was the top-performing currency, rising 6% against a basket of foreign currencies. Concerns over Donald Trump’s policies led to a stronger dollar, outperforming other economies. The yen was volatile, reaching multi-decade highs before declining due to BoJ intervention. Commodities like coffee, lithium, gold, and silver had significant performances, driven by weather conditions and market factors. Vietnam’s coffee exports dropped by 11.4% in the first half of 2024, raising concerns about global crop outlook and prices. On the other hand, lithium saw a 42.3% y-o-y price decrease due to oversupply. In contrast, the price of gold hit all-time highs every month in 2024, driven by safe-haven demand, investor demand, and central bank buying. Silver outperformed gold with a +28.6% y-o-y increase. Despite geopolitical tensions, crude oil prices fell due to increased production and concerns about the Chinese economy. The cryptocurrency market saw significant gains, with Doge outperforming Bitcoin in 2024. Trump’s victory in the U.S. presidential elections boosted the crypto market. Overall, 2024 was marked by uneven economic growth, political shifts, and currency fluctuations. The U.S. dollar emerged as the strongest currency, while precious metals and cryptocurrencies experienced significant movements.



Read more at Investing.com: 2024: Our List of Top Currencies, Commodities & Cryptocurrencies