The dollar index fell Friday in a quiet holiday market, but was expected to end 2021 with a nearly 7% gain. On the EUR/CHF pair, the negative trend still remains in place.

The dollar wraps up its best year since 2015. Investors are betting the US Federal Reserve will raise rates sooner than most other major banks amid runaway inflation fueled by COVID-19 stimulus initiatives. Set for its best year since 2015, the dollar was supported by an improving US economy and persistent inflation that led to a restrictive turn by the Fed, which is now expected to start raising interest rates as early as the month. Of March.

The euro, which is the largest weighting in the dollar index, is down just over 7% in 2021. While the pound sterling has reached its highest level against the euro since February 2020, it has fell just over 1% against the dollar over the year. Finally, the year was marked by the fall of the Turkish lira, which lost around 44% against the dollar in its worst year in two decades, battered by runaway inflation and the unorthodox monetary policy of the Turkish government. .