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Dollar index rises to near five-month high

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Euro sinks to lowest since November 2023

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Bitcoin pares gains from record high

(New throughout, updates prices, market activity and comments)

By Chibuike Oguh and Harry Robertson

NEW YORK/LONDON, Nov 12 (Reuters) -

The U.S. dollar rose to a near five-month high against major

peers on Tuesday, buoyed by expectations of inflationary import

tariffs from Republican President-elect Donald Trump, while

bitcoin pared gains from a record rally.

Bitcoin dropped from a new all-time peak of $89,982

and was last down 0.66% to $87,449.00. Trump has vowed to make

the U.S. "the crypto capital of the planet".

"It's still an extension of the post-election moves; the

economic calendar has been relatively light although it's

picking up later in the week but for now the market is focusing

on the implications of a second Trump term, particularly

policies that would be positive for the dollar such as potential

higher tariffs," said Vassili Serebriakov, an FX strategist at

UBS in New York.

Higher tariffs are expected to push up prices, leaving the

Federal Reserve less scope to cut interest rates.

The U.S. dollar index, which measures the currency

against six peers rose 0.66% to 106.12, hitting its highest

level since late June.

With Trump's Republican Party looking poised to take control

of the House of Representatives, according to Decision Desk HQ,

it will hold a slim majority in both houses of Congress,

allowing the president-elect to push his agenda of cutting taxes

and regulation after he takes office in January.

"There's been a broad move in the dollar that started before

the election and it probably got an added boost because it looks

like we're moving to a red sweep scenario, which is broadly seen

as positive for the dollar," Serebriakov added.

Trump has warned that the euro bloc will "pay a big price"

for not buying enough American exports, with cars a particular

target. He has threatened China with blanket 60% tariffs.

Since his election last week, the euro has languished at a

seven-month trough and the yuan slumped to its lowest in more

than three months, with Europe and China both targets of

potential Trump tariffs.

The euro is feeling additional pressure from political

uncertainty. Germany, the bloc's biggest economy, is set to hold

elections on Feb. 23, which will be 11 weeks after the collapse

of Chancellor Olaf Scholz's governing coalition.

The euro sank to $1.0596 on Tuesday, the lowest

since November 2023, and was last down 0.53% at $1.0598.

Sterling dropped 1.04% to $1.2733 after data showed

regular UK wage growth slowed and unemployment rose, with the

pound also feeling the heat from the dollar's rally.

Against the Japanese yen, the dollar rose 0.66% to 154.73

yen. The Japanese currency dropped to a three-month

low of 154.715 per dollar last week.

The onshore yuan finished the domestic session at

7.2378 per dollar, its lowest close since Aug. 1. The Aussie

dollar - which tends to be swayed by the economic

outlook for China, Australia's top trading partner - weakened

0.75% versus the greenback to $0.6525.