Dollar extends advance on Trump trade momentum
Updates prices throughout, adds analyst comment, recasts headline and first paragraph
By Chibuike Oguh and Alun John
NEW YORK, Nov 14 (Reuters) -The U.S. dollar extended its recent advance against major peers on Thursday, trading ata one-year high and headed for a fifth straight session of gains, propelled by market expectations sinceDonald Trump clinched a dramatic return to the White House.
The greenback climbed above 156 yen JPY=EBS for the first time since July, while theeuro EUR=EBS slumped to its weakest since November 2023 and was flat at $1.0566. Sterling GBP=D3 hit its lowest on the dollar in four months and was last at $1.2697.
Markets anticipate that the incoming Trump administration will imposetrade 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 widepowers to push his agenda.
"The price action that we've had is expected given the election outcome and the logic behind it is built on expectations rather than actualities: expectations of fiscal stimulus, tariffs and deregulation," said Daragh Maher, head of FX strategy, Americas at HSBC in New York.
"We've been in the dollar bullish camp so this seats neatly with our narrative but clearly there's been a big repricing."
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 =USD, 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 highestsince early November 2023.
Bitcoin BTC= pulled back from a recordhigh of $93,480 overnight and was last up 0.42% to $89,008. Trumphas vowed to make the United States "the crypto capital of the planet." Ethereum ETH= declined 2.23% to $3,084.30.
The Swiss franc CHF=EBS remained under pressure against the dollar, which was up 0.19%at 0.8874 francs. The Australian dollar AUD=D3 fell to a three-month low after marginally weaker jobs data, weakening to as low as $0.6453.
World FX rates https://tmsnrt.rs/2RBWI5E
Reporting by Chibuike Oguh in New York; Editing by Andrea Ricci
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