By Kosaku Narioka

The dollar gained slightly on Tuesday as speculation of stronger U.S. growth and higher interest rates continued to support the U.S. currency.

Many market participants are awaiting tangible, effective economic policies from the Trump administration starting next year before pushing up the dollar further.

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Some market participants are also paying attention to any comments from President-elect Donald Trump on the dollar's recent ascent because the dollar's strength damages competitiveness of U.S.-based manufacturers.

Any comments from him expressing concerns about the dollar's rise could trigger a selloff, although that scenario doesn't appear imminent.

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"He may say something if the euro breaks below parity," said Michiyoshi Kato, senior vice president of forex sales at Mizuho Bank. Still, Kato said he expects protective measures will more likely come in the form of tariffs than currency steps.

The euro was at $1.0448, down from $1.0453 late Monday in North America, according to EBS. The dollar was at Yen117.27, up from Yen117.11. The British pound was at $1.2278, down from $1.2286.

(END) Dow Jones Newswires

December 27, 2016 01:42 ET (06:42 GMT)

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