Dollar hits seven year high against yen; gains against all G-10 rivals

The U.S. dollar rose to a fresh seven-year high against the yen Wednesday, and rallied against most of its G-10 rivals, as investors rushed to buy the dollar, believing that Republican rule in Congress could translate to improved economic growth in the U.S.

The dollar USDJPY, -0.31%  traded at 114.68 yen Wednesday morning, off its high of ¥114.8340. It traded at ¥113.69 Tuesday afternoon.

Large gains against the euro pushed the ICE U.S. Dollar Index to a fresh four-year high. The index DXY, -0.24%  , a measure of the dollar’s strength against a basket of six currencies, was up 0.64% to 87.5340. The euro EURUSD, +0.32%  traded at $1.2467 early Wednesday, its lowest level since August 2012, compared to $1.2548 Tuesday.

The pound GBPUSD, +0.09%  fell to its lowest point against the greenback in a year, falling as low as $1.5869 Wednesday morning before recovering slightly. It last traded at $1.5933, compared to $1.6000 Tuesday.