Dollar extends advance on Trump trade momentum
The U.S. dollar extended its recent advance against major peers on Thursday, trading at a one-year high and headed for a fifth straight session of gains, propelled by market expectations since Donald Trumpclinched a dramatic return to the White House.
The greenback climbed above 156 yen for the first time since July, while the euro slumped to its weakest since November 2023 and was flat at $1.0566. Sterling hit its lowest on the dollar in four months and was last at $1.2697.
Markets anticipate that the incoming Trump administration will impose trade tariffs and tighten immigration as well as deepen the deficit, measures deemed to be inflationary.
The President-elect's Republican Party will control both houses of Congress when he takes office in January, Edison Research projected on Wednesday, giving him wide powers to push his agenda.
U.S. producer prices picked up in October, the Labor Department reported on Thursday, a day after data showed that consumer inflation had barely budged last month. The data did not change views the Federal Reserve would deliver a third interest rate cut next month.
The U.S. dollar index , which measures the currency against six top counterparts including the euro and yen, was up 0.11% at 106.58, after having reached as high as 107.07, its highest since early November 2023.
The Swiss franc remained under pressure against the dollar, which was up 0.19% at 0.8874 francs. The Australian dollar fell to a three-month low after marginally weaker jobs data, weakening to as low as $0.6453.
Source : Reuters
