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Dollar trades in sight of thirteen-and-half year peak

The dollar traded within sight of its highest level in more than 13-1/2 years on Tuesday as bond yields soared on expectations that President-elect Donald Trump's economic policies will fuel inflation.

The dollar index, which measures the greenback's value against a basket of six major currencies, last traded at 99.883. On Monday, it had risen as high as 100.22.If the index climbs above the December 2015 peak of 100.51, it would reach its highest level since April 2003.

Since Trump won the U.S. presidential last week, the 10-year U.S. bond yield has jumped about 0.40 percentage point to 10-month highs as his policies of heavy fiscal spending and trade protectionism are seen likely to stoke inflation.

A gauge of emerging Asian currencies is heading for the lowest close since March 2009 as the dollar surged after Donald Trump’s unexpected election victory. The Bloomberg-JPMorgan Asia Dollar Index, which tracks 10 regional currencies, is down 2 percent this year. As recently as August it was up 1.7 percent. Emerging assets have tumbled in the past week as the president-elect is seen unleashing a spending surge, pushing the Federal Reserve to raise interest rates.

Oil prices rise on falling shale output, renewed hopes of OPEC cut

Oil prices rose around 2 percent on Tuesday to move away from multi-month lows struck the day before, pushed higher by expectations of falling shale output and renewed optimism that OPEC will deliver on touted production cuts.

U.S. crude futures for December delivery CLc1 had climbed 90 cents, or 2.1 percent, to $44.22 a barrel by 0340 GMT. They struck their lowest in nearly two months the session before.

"Headlines around increasing OPEC production remained prevalent, although the focus switched to final diplomatic efforts from nations to agree to a production cut."

Saudi Arabia's energy minister said it was imperative for the Organization of the Petroleum Exporting Countries to reach a consensus on activating a deal made in September to curb production, according to Algeria's state news agency APS on Sunday. OPEC members are due to meet later this month.