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Dollar Hits Highest Level Since 2002

The dollar index rose to a new 14-year high on Tuesday after data showed U.S. manufacturing activity grew more than expected in November.

The dollar index, which tracks the greenback against six major world currencies, rose to 103.820, its highest level since December 2002 after construction spending rose to its highest level in 10-1/2 years and the institute for supply management reported manufacturing prices paid and purchasing managers’ prices had also outpaced expectations.

The euro fell to $1.0342, its lowest against the dollar since 2002, after the data release. The British pound fell to $1.22. That’s the lowest that currency has been since October when it sunk to $1.21, a multi-year low. The Dow Jones industrial average was up over 150 points mid-morning on Tuesday to 19,913, putting it back within striking distance of Dow 20,000.