US Dollar in 2024 : Global Political Climate and 2024 Elections 

The presidential elections in 2024 in the U.S. are expected to have a significant impact on the global financial markets and the dollar. Historically, during presidential elections, the dollar tends to fluctuate. This could be because of shifts in policy direction. The current political climate in the country is also expected to have an effect on the currency.

The presidential debates and the positions of the candidates could lead to market and currency valuations being affected by uncertainties.

A shift toward protectionist policies could cause the dollar to strengthen in the short term. This could help reduce the country’s trade deficit.

Shifting toward more open trade policies would put downward pressure on the dollar. On the other hand, changes in taxation and government spending, which can be determined by the election result, could have a positive or negative impact on the country’s economic growth, which could affect the value of the dollar.

The results of the presidential election could lead to changes in tax, spending, and trade policies, which can have a significant impact on both the DXY and the U.S. economy. Because of this, investors and traders are closely monitoring the country’s political developments.

Factors that can affect the U.S. dollar in 2024 include international tensions, the rise of BRICS nations, such as India, China, Brazil, and South Africa, and the Middle East, among others. These developments will have a significant impact on the global currency markets. The division among global powers, especially after the no-limits alliance between Russia and China in 2022, has severely disrupted the international financial system and trade.

The emergence of non-dollar petroleum products and the introduction of a BRICS currency suggest a shift in the balance of power in global trade. A reduction in the dollar’s global influence could cause inflation, as it could reduce the purchasing power of various currencies.

Rising trade tensions could result in the implementation of new trade agreements and tariffs, which directly affect the value of the dollar and the flow of currency. The growth of BRICS nations could also lead to changes in global trade networks, which could result in alternative financial structures.

The geopolitical developments could lead to the U.S. revisiting trade deals or modifying its financial policies, which directly affects the value of the dollar in global markets.

The developments in the foreign exchange markets will be influenced by the changes in the U. S. currency’s position against other major global units during 2024. The price variance of the buck index, which is mainly a function of its strength against other major currencies, such as the British pound and the euro, is also expected to be high as a result of the various economic and geopolitical factors that affect it.

In late 2023, the dollar’s decline against major currencies caused the index to fall to around 100.00, and this is expected to cause changes in its composition. The other factors that could affect the global trade balance are the developments in emerging markets and the strengthening of their currencies.

This could lead to a reevaluation among investors of the traditional pairs of foreign exchange instruments. In the following year, speculative positions in the forex market are expected to undergo a change.