The US dollar hit its highest levels in 14 years on Thursday as investors took their lead from a hawkish Federal Reserve in pricing in a stronger US economy under Donald Trump.
The rise in the dollar index pushed the euro to its lowest level in more than a decade and roiled emerging markets, which had been enjoying a strong recovery until Mr Trump’s election victory.
The US currency and global stock indices both rose in response to Wednesday’s signal that several Fed policymakers were ready to tighten more forcefully than the market had expected if the president-elect’s promised stimulus plan stokes US inflation and economic activity.
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