Dollar Hits New High as House Set to Impeach Trump

WikiFX News (11 Jan.) -The US dollar hit a more than one-week high of 90.33 amid soaring risk aversion, attributed to the House's plan of impeaching President Donald Trump.

The Trump-incited riot at the US Capitol poses a mortal threat to American democracy, said US House Speaker Nancy Pelosi. The House on Monday introduced a resolution to impeach President Donald Trump, setting up a vote this week unless Vice President Mike Pence uses his constitutional authority to remove the president.

Some Republicans believe Trump should be removed from office before January 20, the day President-elect Joe Biden will be inaugurated, and the same day Trump supporters are planning a virtual “second inauguration” for him.

Potential uncertainties may occur around the inauguration, which intensified concerns about the US political situation. As a result, US stock-index futures edged slightly lower in Monday's morning session, while the greenback gained some grounds.

The country's economy will find a boost from the larger fiscal stimulus that Biden will adopt once he takes office. Besides, the rosy expectations arising from the Covid-19 vaccines have suddenly vanished due to a new variant of the virus. All these will pave the way for the rise in the dollar.

Use WikiFX (bit.ly/wikifxIN) to discern market trends, capture trading opportunities and make more profits.

Chart: Trends of the DXY