By Anora Mahmudova and Carla Mozee, MarketWatch , Kosaku Narioka
Euro at lowest since last December
The U.S. dollar strengthened against most major currencies, with a key dollar gauge hitting its highest point in a year Monday, as investors priced in policy shifts expected to be undertaken during Donald Trump's presidency.
The U.S. Dollar Index , which tracks the greenback's performance against six other currencies, rallied 1% to 100.00 late Monday in New York, its strongest level since Dec. 2, 2015, according to FactSet data. The dollar gauge briefly touched 100.22.
The index was on track for its sixth consecutive advance, its longest win streak since a six-session run in early May.
"Thedriving 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 U.S. 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 level in 11 months, trading at $1.0739 late in New York, compared with $1.0856 late Friday.
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 Yen108.38 yen late Monday in New York, 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 uncertaintyover 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 $1.2493 late in New York trade, backing off gains last week that pushed the 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 were hit by worries that Trump's potential protectionist trade policies will hurt exports out of developing countries.
The Turkish lira and Russian ruble were the hardest hit among emerging market currencies. The dollar was buying 3.2848 lira on Monday, which slumped 1%. The ruble declined 0.3% with the U.S. dollar buying 66.0550.
The Mexican peso was off another 0.6%, with the dollar changing hands at 20.6413 pesos.
The Chinese yuan was off about 0.5% against the dollar at 6.8463, its weakest level since 2008.
"It is more of a dollar story than a yuan story. Since the eve of the U.S. 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 16:09 ET (21:09 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.