By: Sally Ismail

Mubasher: The American Dollar kept its weak performance against major currencies during Friday on the back of concerns regarding the tax reforms and negative expectations in relation to the US' currency.

“The Dollar is threatened by six years of weakness as stronger global growth will outweigh any boosts from interest-rate increases by the Federal Reserve”, according to a report made by Morgan Stanley.

Also, the political situation in the US is affecting the Dollar, given the subpoenaing of the President Donald Trump’s election campaign by Special Counsel Robert Mueller, in the light of accusations of facilitating the intervention of Russia in the presidential election, Morgan Stanley reported.

The yen will increase, while the bank of Japan will see a bigger role the global economy, the report showed. 

“The Bloomberg Dollar Spot Index has climbed 3.8% since dropping to hit two year-low in September. It’s still down in excess of 7% for the year,” Bloomberg stated.

The democratic and the republican parties have different agendas regarding the tax reforms, which reflected in the investors’ stressful anticipation of the final draft of tax reforms to be approved by the congress.

Translated by: Muhammad Khalid