The dollar was likely to continue its lurch higher in the wake of the surprise presidential election win by Donald Trump, as inflation was set for a comeback, analysts said.
The dollar index, which measures the dollar against a basket of currencies, rose as high as 99.247 in early Asia trade on Monday, from levels below 97 in the days before the U.S. election, which Trump won.
Analysts said the market was now pricing in the billionaire businessman's surprise win.
"It is very much the market building up expectation or pricing in his election campaign language," Tai Hui, chief Asia market strategist at JPMorgan Asset Management, told CNBC's "Squawk Box" on Monday. "His bias in terms of policy from an economist's standpoint is very much inflation, inflation, inflation."
"Infrastructure, deficit spending, protectionism, immigration reform; everything he's mentioned so far is going to push prices higher in the U.S.," Hui said. "If you block immigrants, or even illegal immigrants working in the states, wages will rise. If you think about trade policy, if you block Chinese exports to the U.S. prices will rise."