The dollar rises strongly and reaches its highest levels in 4 months.

The dollar index jumped sharply during trading in the currency market on Monday, reaching its highest level in 4 months, as the greenback continues to achieve strong gains following Donald Trump's victory in the U.S. presidential elections. In this context, the markets see that the elected American president may implement expansionary policies aimed at revitalizing the labor market in the United States and boosting economic activity. This could reignite inflationary pressures, especially as U.S. inflation remains stable at the Federal Reserve's highest target. Consequently, it is likely that the U.S. Federal Reserve will not rush into a cycle of interest rate cuts and will take slower steps to prevent inflation from reigniting and to ensure a sustainable decline in inflation to the Fed's target of 2%. In these circumstances, it is expected that the U.S. dollar will receive higher cash inflows compared to its major foreign currency counterparts, amid interest rate differentials between the respective countries, which has reinforced demand for the dollar in today's trading and, thus, its rise against other major currencies. Additionally, the dollar found support from comments made by Federal Reserve member Neel Kashkari, which indicated that high inflation has not been completely eradicated yet, suggesting that the battle against high inflation is still ongoing. Regarding today's currency market trading, the U.S. dollar index - which measures the performance of the greenback against a basket of other major currencies - rose by about 0.57% to reach 105.544 points.