"It's a continuation of the post-election response," said Ian Gordon, FX strategist at Bank of America Merrill Lynch. "For us, the clean sweep of both the White House and the Congress by the Republicans is a clear signal that we are going to get a pretty significant fiscal stimulus in 2017 and that is going to be bullish for (interest) rates."
Expectations that Trump's policies would boost spending and inflation helped U.S. long-dated Treasury yields rise to their highest levels in more than 10 months. Yields on benchmark 10-year notes and 30-year bonds had their largest one-day rise in years on Wednesday and added to gains on Thursday ahead of a 30-year bond auction.
Higher interest rates for U.S. Treasuries raise the value of the dollar by making dollar-denominated assets more attractive to investors.
Analysts also pointed to Trump's tone of unity during his presidential acceptance speech as helping spur confidence in the dollar.
The Chinese yuan weakened past 6.80 per dollar in the offshore market on Thursday for the first time in more than six years on fears that Trump will act on the protectionist rhetoric that ran through his campaign, particularly regarding trade with China. The yuan eased to 6.8259 against the dollar.