Investing.com - Expectations of a significant fiscal stimulus under the administration of President-elect Donald Trump sent the U.S. dollar to its highest in nearly 14 years against a basket of currencies and the Dow Jones to record high territory this week.
The dollar index reached 100.57 on Wednesday, which was its highest since April 2003. It has risen almost 4% over the last eight days, which would be the biggest such increase since May 2015.
The greenback has soared since Trump was elected president last week, as investors eyed the prospect of U.S. interest rates rising faster than previously expected due to his plans for an expansionary fiscal policy that would stoke inflation.
Meanwhile, the Dow went on a seven-session win streak, which included four straight record closing highs, since November 9, as the market's focus remained squarely on the policies of President-elect Donald Trump.
The Republican has said that he planned to spend on infrastructure and cut taxes to stimulate the economy and spur inflation, which would ultimately lead to an era of higher interest rates.
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