Dollar at fresh 14-year highs vs. rivals after mixed U.S. data

Dollar continues to climb vs. rivals, reaches new multi-year highs

Investing.com – The dollar was hovering at a fresh 14-year peak against the other majors currencies on Wednesday, after the release of mixed U.S. data failed to dampen optimism over the strength of the economy.

The Universtity of Michigan said its rose to 93.8 in November from 91.6 the previous month, beating expectations for an unchanged reading.

In addition, the U.S. Commerce Department said climbed 4.8% last month, compared to expectations for a gain of 1.5%.

, which exclude volatile transportation items, rose 1% last month, compared to a forecast increase of 0.2%.

On a less positive note, the U.S. Department of Labor said in the week ending November 19 increased by 18,000 to251,000 from the previous week’s total of 233,000 (initially 235,000). Analysts had expected jobless claims to rise by 15,000 to 250,000 last week.

Another report showed that fell by 1.9% to 563,000 units last month, disappointing expectations for a 0.3% increase.

The greenback has remained supported amid expectations that President-elect Donald Trump’s plans to ramp up fiscal spending and cut taxes will spur economic growth and inflation.

Faster growth would spark inflation, which in turn would prompt the Fed to tighten monetary policy a faster rate than had previously been expected.

The U.S. dollar has also been boosted by bets that the U.S. central bank will almost certainly raise interest rates next month.

Fed Chair Janet Yellen on Thursday reiterated that a rate hike “could well become appropriate relatively soon.”

dropped 0.81% to a fresh 11-month low of 1.0537.

Research group Markit earlier reported that its , which measures the combined output of both the manufacturing and service sectors, increased to 54.1 November from the prior month’s reading of 53.3 and above forecasts for no change.

The slipped to 54.9 this month from 55.0, while the climbed to a six-month high of 55.0 from 54.2.

Markit also said its declined to a two-month low of 51.5 in November from 51.8 the previous month, while the rose to a two-month high of 52.6 from 51.4.

Elsewhere, slid 0.27% to 1.2390.

rallied 1.43% to an eight-month high of 112.78, while climbed 0.56% to 1.0171.

The Australian and New Zealand dollars were weaker, with down 0.08% at 0.7396 and with dropping 0.79% to 0.7006.

Meanwhile, gained 0.28% to trade at 1.3478.

The , which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.81% at a fresh 14-year high of 101.91.

Dollar at fresh 14-year highs vs. rivals after mixed U.S. data