By Kosaku Narioka
The dollar ascended Monday in Asia, hitting multi-month highs against the euro, the yen and the Canadian dollar, driven by continued speculation that U.S. President-elect Donald Trump's fiscal stimulus will boost the U.S. economy and lead to further rate increases by the Federal Reserve.
Speculation has grown that Mr. Trump's possible spending expansion and tax cuts will bolster the U.S. economic growth and the Federal Reserve will raise rates in December and continue its tightening path next year. Higher interest rates on dollar assets tend to attract investment from abroad.
The euro was at $1.0798 as of 0410 GMT afterhitting the 10-month low of $1.0773 earlier in the day, according to EBS via CQG. The euro was at $1.0856 late Friday in New York.
The dollar was at 107.45 yen after hitting as high as Y107.59, the highest level since June 7, earlier in the day. The dollar was at Y106.69 late Friday.
Yet, some market participants remained cautious about the longer-term outlook for the dollar given uncertainty over the combination of economic measures Mr. Trump could take.
"We'd have to see how Mr. 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.
The dollar was at 1.3559 Canadian dollar after hitting the highest level since Feb. 29 of C$1.3565. The dollar was at C$1.3541 late Friday.
Interbank Foreign Exchange Rates At 00:50 EST / 0450 GMT
Latest Previous %Chg Daily Daily %Chg
Dollar Rates Close High Low 12/31
USD/JPY Japan 107.41-42 106.67-68 +0.70 107.59 106.68 -10.70
EUR/USD Euro 1.0797-800 1.0855-58 -0.53 1.0857 1.0774 -0.57
GBP/USD U.K. 1.2560-62 1.2592-94 -0.25 1.2593 1.2509 -14.76
USD/CHF Switzerland 0.9911-15 0.9877-81 +0.34 0.9938 0.9879 -1.07
USD/CAD Canada 1.3556-61 1.3538-43 +0.13 1.3565 1.3541 -2.02
AUD/USD Australia 0.7545-49 0.7543-47 +0.03 0.7560 0.7524 +3.57
NZD/USD New Zealand 0.7094-100 0.7112-18 -0.25 0.7115 0.7075 +3.86
EUR/JPY Japan 115.97-6.01 115.78-82 +0.16 116.18 115.80 -11.32
Source: ICAP PLC
Write to Kosaku Narioka at email@example.com
(END) Dow Jones Newswires
November 14, 2016 00:39 ET (05:39 GMT)
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