Investing.com - The dollar extended gains to hit an eleven-month high against the other majors currencies on Monday, as optimism over the economic implications of a Trump presidency continued to boost demand for the greenback.
EUR/USD tumbled 1.23% to 1.0722, the lowest level since January.
The dollar continued to strengthen amid hopes that increased fiscal spending and tax cuts under a Trump administration will bolster economic growth and inflation.
Expectations for higher U.S. interest rates also remained intact amid optimism that a pick-up in growth will allow the Federal Reserve to tighten borrowing costs.
The Mexican peso remained under pressure, with MXN/USD down 0.21% at 0.0480, not far from Friday’s record-lows of 0.0467.
In a press conference last Wednesday, Mexican central bank officials said they were watching market volatility but refrained from any measures to stem the peso’s decline.
Elsewhere, GBP/USD retreated 0.99% to 1.2467, off Friday’s five-week high of 1.2675.
USD/JPY rallied 1.51% to 108.29, the highest since June 3, while USD/CHF rallied 1.07% to 0.9987.
In Japan, data overnight showed that the economy grew at a faster than expected pace in the third quarter, with GDP expanding by 2.2% on a year-over-year basis, but the report also indicated that domestic demand remained weak.
The Australian and New Zealand dollars were weaker, with AUD/USD down 0.09% at 0.7537 and with NZD/USD declining 0.46% to 0.7081.
Meanwhile, USD/CAD rose 0.21% to trade at a nine-month high of 1.3571.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 1.16% at 100.14, the highest since December 2015.