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Bitcoin surges to new all-time peak

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Yen drops below 155 per dollar

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Euro falls to one-year low

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Dollar index hits highest since November 2023

(Updates prices throughout, recasts headline and first

paragraph, adds fresh analyst comment)

By Chibuike Oguh

NEW YORK, Nov 13 (Reuters) - The U.S. dollar advanced to

one-year high against major currencies on Wednesday powered by

so-called Trump trades and after U.S. inflation for October came

in as expected, suggesting the Federal Reserve will continue

lowering interest rates.

The greenback hit its highest level since November 2023,

buoyed by Donald Trump's victory in last week's U.S.

presidential election, which sparked expectations of potentially

inflationary tariffs and other measures by his incoming

administration.

Trump's Republican Party will also control both houses of

Congress when he takes office in January, Edison Research

projected on Wednesday, enabling him to push an agenda of

cutting taxes and shrinking the federal government.

The dollar index, which measures the greenback

against a basket of currencies including the yen and the euro,

rose 0.43% to 106.44 after reaching as high as 106.53.

"I'm not sure the inflation data pushed things around too

much since it was pretty much in line with expectations," said

Brad Bechtel, global head of FX at Jefferies.

"I think it's just continuation of the Trump trade kind

of mindset ... leading to strengthen the dollar on a broad basis

but also kind of a flushing of some of the EM [emerging market]

long positions."

Labor Department data on Wednesday showed the U.S. consumer

price index rose 0.2% for the fourth straight month, in line

with economists' expectations, amid higher costs for shelter

such as rents. In the 12 months through October, the CPI

advanced 2.6%.

U.S. Treasury yields fell following the inflation data, with

the 2-year note yield, which typically moves in step

with interest rate expectations, dropping 6.5 basis points to

4.279%.

"So certainly there was a lot of concern going into the

number as it's just one of the new bricks in this kind of wall

of worry; so there's a little bit of a relief rally and yields

are lower," said Marvin Loh, senior global market strategist at

State Street in Boston.

"It just shows how on edge the market is based on the Fed,

based on inflation, and certainly based on this nebulous Trump

trade. The dollar seems to be one of the cleanest, easiest ways

of playing the Trump trade as well as bitcoin, it seems."

Bitcoin surged past the $90,000 level for the first time,

powered by euphoria from Trump's election victory and

expectations that his administration will be beneficial to

cryptocurrencies. Bitcoin gained 2.75% to $90,734.00.

Ethereum declined 3.11% to $3,178.60.

Japan's wholesale inflation accelerated in October at the

fastest annual pace in more than a year, complicating the Bank

of Japan's decision on how soon to raise interest rates.

The yen broke through 155 per dollar, the Japanese

currency's weakest level since late July. It was last at 155.46

yen per dollar.

The euro continued its descent amid expectations of

potential Trump tariffs. Political uncertainty in Germany, the

bloc's biggest economy, has also weighed on the currency

following the collapse of Chancellor Olaf Scholz's governing

coalition last week and with snap elections set for Feb. 23.

The euro was down 0.51% at $1.0569. It had dropped

to as low as $1.055575, its lowest level since November 2023.

The dollar was flat at 7.243 versus the offshore

Chinese yuan. Against the Swiss franc, the dollar

strengthened 0.43% to 0.885.