By Anora Mahmudova and Carla Mozee, MarketWatch , Kosaku Narioka

Euro at lowest since last December

U.S. dollar strengthened against most major currencies, with a key dollar gauge hitting its highest in a year Monday, as investors priced in policy shifts expected to be undertaken during Donald Trump's presidency in the U.S.

The U.S. Dollar Index , which tracks the greenback's performance against six other currencies, rallied 1.1% to 100.18, its strongest level since late November 2015, according to FactSet data. The dollar gauge briefly touched 100.22.

The index was on track for it sixth consecutive advance, its longest win streak since a six-session run in early May.

"The driving force continues to be the anticipated shift toward more fiscal stimulus, while confidence grows of Fed rates hikes, with the second in the cycle expected to be delivered next month," said Marc Chandler, global head of currency strategy at Brown Brothers Harriman in a note.

"The magnitude of the US stimulus the investors seem to be assuming will pass a Republican-controlled Congress has spurred a shift out of bonds, emerging markets, and gold," Chandler said.

Read: Trump happened: What it means for stocks, bonds, other markets (http://www.marketwatch.com/story/what-trump-victory-means-for-stocks-bonds-and-other-markets-2016-11-11)

Trump has pledged to repair aging roads, airports, ports and take on other infrastructure projects, but investors are awaiting finer details of the plan.

The Federal Reserve's next policy meeting is on Dec. 14, and expectations for an interest-rate hike have risen to more than 80%, according to the CME Group's data(http://www.cmegroup.com/trading/interest-rates/countdown-to-fomc.html).

Euro and yen: The greenback's strength pushed the euro down to its lowest in 11 months, trading at $1.0719 compared with $1.0856 late Friday in New York.

The euro's weakness stems from "market concerns that Donald Trump's victory will trigger a wave of populism and political uncertainty throughout Europe," said Thanim Islam, senior FX dealer at FairFx, in a note.

"An Italian referendum is due in December, the French presidential elections are in May 2017 and Germany's Federal elections in autumn 2017--all of which could well be key for the future of the eurozone."

Against Japan's currency, the dollar was at Yen18.36 yen, the highest level since June 7. The dollar was at Yen106.64 late Friday.

Yet, some market participants remained cautious about the longer-term outlook for the dollar given uncertainty over the combination of economic measures Trump could take.

"We'd have to see how Trump's economic team will formulate their policy," said Toshihiko Sakai, senior manager of forex and financial products trading at Mitsubishi UFJ Trust and Banking Corp.

Read:Trump names RNC head Reince Priebus as chief of staff (http://www.marketwatch.com/story/reince-priebus-said-to-be-top-contender-for-trumps-chief-of-staff-2016-11-13)

The pound , meanwhile, fell to $1.2478, backing off gains last week that pushed sterling above October levels around $1.2600. Last week's leap for the pound stemmed from brighter prospects of a trade deal between the U.K. and the U.S.

Meanwhile, emerging-market currencies remained in focus, with many getting hit by worries that Trump's potential protectionist trade policies will hurt exports out of developing countries.

The Turkish lira and Russian ruble are the hardest high among emerging market currencies. The dollar was buying 3.2903 lira on Monday, which slumped1.2%. The ruble slumped 0.7% with the U.S. dollar buying 66.2980.

The Mexican peso is off another 0.3%, with dollar changing hands at 20.8161 peso.

The Chinese yuan is off about 0.5% against the dollar at 6.8471, its weakest level since 2008.

"It is more of a dollar story than a yuan story. Since the eve of the US election, the yuan has fared better than most in the region, falling almost 1%," said Marc Chandler, global head of currency strategy at Brown Brothers Harriman in a note.

Read: How Trump win pulled the beaten-down pound out of the doldrums (http://www.marketwatch.com/story/how-trump-win-pulled-the-beaten-down-pound-out-of-the-doldrums-2016-11-11)

(END) Dow Jones Newswires

November 14, 2016 10:46 ET (15:46 GMT)

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