Dollar hits new 14-year high, Dow sets sights on 20,000

Dollar hits new 14-year high, Dow sets sights on 20,000
Credit: studio 55 /

The dollar hit a 14-year high on Tuesday as the yen fell after the Bank of Japan stuck to its ultra-loose monetary policy and the euro weakened following deadly attacks in Germany and Turkey.

On Wall Street, the Dow appeared set for another run at 20,000 points .DJI, as concern after the attacks in Europe were offset .FTEU3 by reassurance over Italy’s plan to spend up to 20 billion euros ($21 billion) to rescue its troubled banks.

On currency markets, a sense of caution after a truck plowed into a Christmas market in Berlin, killing 12, sent the safe-haven Swiss franc towards a six-month high versus the euro EURCHF= and pushed the common currency firmly back below $1.04. EUR=

But the dollar .DXY and rising bond yields US10YT=RR again dominated, after the head of the Federal Reserve flagged the strength of the U.S. jobs market in a speech to students on Monday.

That sent the greenback up almost half a percent against a basket of major currencies to 103.65 .DXY, its strongest since January 2003. [FRX/]

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