By Chelsey Dulaney
The dollar ticked higher Tuesday as investors continue to bet U.S. interest-rates will rise in December.
The WSJ Dollar Index, which measures the U.S. currency against 15 others, rose 0.1% to 91.29. Before falling Monday, the index had notched 10 straight gains, its longest winning streak since May 2012.
The greenback's surge has been driven by expectations President-elect Donald Trump's plans to boost fiscal spending and cut taxes will support U.S. growth.
Meanwhile, investors continue to grow more confident the Federal Reserve will raise interest rates in December, a move expected to support the dollar by making the currency more attractive to yield-seeking investors.
Fed-funds futures, a popular tool for traders to bet on U.S. interest rate policy, show a 94% probability the Fed lifts rates at its December meeting, according to data from CME Group.
Data released Tuesday showed homebuying activity rose in October for the second straight month to a new cyclical high, a sign the housing market is stabilizing as the year comes to a close.
Despite the optimistic outlook for the U.S. economy, analysts say investors are taking advantage of quiet trading surrounding the Thanksgiving holiday Thursday to take profits on the dollar's swift rally.
"With trading volumes likely to dry up around the middle of this week, many investors seem content to take some cash off of the table following a strong run higher in the greenback," said Omer Esiner, chief market analyst at Commonwealth Foreign Exchange.
The British pound fell 0.6% to $1.2421. The pound had rallied over 1% Monday after Prime Minister Theresa May sought to ease concerns about how Brexit will impact business.
Write to Chelsey Dulaney at Chelsey.Dulaney@wsj.com
(END) Dow Jones Newswires
November 22, 2016 16:56 ET (21:56 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.