Possibility of hawkish Fed chair props up US$

London

The greenback was supported by US two-year Treasury yields hitting their highest levels in almost nine years on Monday, after it was reported that Mr Trump was favouring Stanford economist John Taylor to head the Fed. They have stayed close to those levels on Tuesday.

MUFG currency economist Lee Hardman, in London, said that the bank would "not be surprised" to see an initial jump in the US dollar of between 3 and 5 per cent should Mr Taylor be chosen.