Investing.com - The dollar trimmed gains but continued to hover at nine-month highs against the other majors currencies on Monday, as optimism over the economic implications of a Trump presidency continued to support demand for the greenback.
EUR/USD retreated 0.66% to 1.0782, the lowest level since January.
The dollar was boosted by 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 0.42% at 0.0479, 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 slid 0.33% to 1.2556, off Friday’s five-week high of 1.2675.
USD/JPY rallied 1.03% to 107.78, the highest since June 7, while USD/CHF climbed 0.88% to 0.9967.
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 dollar edged higher, with AUD/USD up 0.20% at 0.7556, while NZD/USD shed 0.22% to 0.7099.
Meanwhile, USD/CAD slipped 0.11% to trade at 1.3527, after climbing to a nine-month high of 1.3588 earlier in the day.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.64% at a nine-month peak of 99.62, just off an 11-month highsof 100.03 reached earlier in the session.