The greenback. dollar stood firm against many other currencies, with its index rising back to 103.36 from Monday’s low of 102.52, coming within sight of its 14-year peak of 103.56 touched on Thursday.
The dollar was helped in part by upbeat comments from Federal Reserve Chair Janet Yellen on the U.S. jobs market.
The dollar also rose to 117.75 yen, quickly recovering from Monday’s low of 116.55 yen as fresh buying emerged after the Bank of Japan kept monetary policy unchanged at its meeting ending on Tuesday.
Expectations that the incoming Trump Administration’s planned tax cuts and fiscal spending could lead to higher U.S. growth and inflation has lifted U.S. bond yields and the dollar since last month.
“The dollar is rising on expectations of Trump’s policies and I think the rally will continue as long as there are uncertain elements to his policies,” said Kazushige Kaida, head of foreign exchange at State Street.
“But markets are starting to take it as a fact, and that suggests the dollar’s rising cycle is coming near an end. Those who got on the bus first will be starting to get off,” he added.
The euro slipped 0.2 percent to $1.0382, extending its 0.5 percent fall on Monday and edging near its Dec. 15 low of $1.03665, its weakest level since January 2003, Reuters reports.
The British pound also dipped to $1.2355 on Monday, its lowest in about a month and last stood at $1.2383.
The Australian dollar fell to 6-1/2-month lows of $0.7240, turning negative for the year.
