Dollar slips lower but remains near 14-year peak

© Reuters. Dollar loses some ground but remains broadly supported

Investing.com – The dollar slipped lower but remained close to a 14-year peak against the other majors currencies on Monday, as overall optimism over the U.S. economy since Donald Trump’s election and expectations for an upcoming rate hike continued to support the greenback.

gained 0.30% to 1.0621, off Friday’s 11-month trough of 1.0579.

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.”

Investors were looking ahead to a speech by European Central Bank President Mario Drgahi due later in the day, after he said on Friday that the central bank will continue to act as warranted using all instruments available.

Speaking at the 26th European Banking Congress, in Frankfurt, Draghi added that the euro zone’s economic recovery still relies to a considerable degree on accommodative monetary policy.

Elsewhere, slipped 0.12% to 1.2328.

held steady at 110.83, after rising to a six-month high of 111.19 overnight, while was little changed at 1.0103.

The Australian and New Zealand dollars edged higher, with up 0.18% at 0.7346 and with adding 0.14% to 0.7015.

Meanwhile, shed 0.21% to trade at 1.3475.

The , which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.21% at 101.20, just off Friday’s fresh 14-year peak of 101.54.

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Dollar slips lower but remains near 14-year peak