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Dollar Index Surges to 14-Year High

Dollar Index Surges to 14-Year HighDollar Index Surges to 14-Year High

The dollar soared to its highest since April 2003 against a basket of currencies on Wednesday, reaching its strongest in a year against the euro as major banks and investors debated the possibility of another move toward euro-dollar parity.

After a week-long rally driven by the post-election surge in US bond yields, some of the major banks have been sounding more cautious on the dollar's immediate prospects, Reuters reported.

But fueled by expectations of an inflationary push from the administration of President-elect Donald Trump that would spur more rises in Federal Reserve interest rates, it advanced past $1.07 per euro for the first time since the start of December 2015.

It also rose 0.5% against the yen to its highest since June 1, pushing the dollar index up another 0.3% to 100.53. It has gained almost 3% since Trump's election victory just over a week ago.

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