* Dollar hits one-week highs vs euro, franc
* Sterling hits 3-month low vs dollar
* Expectations of pro-growth message from Trump news
* Also eyed for signs of protectionism, concerns over dollar
(Updates prices, adds comments; changes byline, dateline, pvs
By Sam Forgione
NEW YORK, Jan 11 The U.S. dollar hit its highest
level in a week against a basket of major currencies on
Wednesday on expectations that Donald Trump would sound a
pro-growth message in his first news conference as U.S.
The latest rise in the dollar index, which measures the
greenback against a basket of six major currencies, brought its
gains since the Nov. 8 U.S. election to 5 percent. The index,
which hit a 14-year high of 103.820 on Jan. 3, hit a session
high of 102.950 on Wednesday.
Investors have been betting Trump will boost public spending
and spur repatriation of overseas funds by U.S. companies,
policies expected to bring higher inflation and induce the
Federal Reserve to raise interest rates at a steady pace.
Trump, who takes office on Jan. 20, is scheduled to speak in
New York at 11:00 a.m. ET (1600 GMT).
"The hope is for a pivot back toward the Trumponomics
agenda, which was three key themes: tax reform, deregulation,
and infrastructure spending," said Vassili Serebriakov, a
currency strategist at Credit Agricole in New York.
Analysts said traders also used the general optimism
surrounding the news conference as a reason to buy back the
dollar after recent weakness, including a more than 1 percent
drop in the dollar index on Jan. 5.
The euro fell about 0.9 percent against the dollar to a
one-week low of $1.0455. The dollar rose about 0.9
percent against the yen to a session high of 116.85 yen
after falling against the Japanese currency for the past two
The dollar hit a one-week high against the Swiss franc of
1.0248 francs. Sterling hit a three-month low of $1.2038
The Mexican peso weakened to an all-time low of
21.955 to the dollar as traders expect Trump to clarify whether
he will stand by his campaign pledges to break with trade
agreements with Mexico.
Analysts said the dollar could weaken if the Republican
president-elect suggests he is worried about a strong U.S.
currency or strikes an overtly protectionist stance.
"The wild card here is if Trump sounds a protectionist,
anti-immigration, anti-strong dollar tone," said Omer Esiner,
chief market analyst at Commonwealth Foreign Exchange in
Washington. "And if we get that, there is substantial risk for
(Reporting by Sam Forgione; Additional reporting by Patrick
Graham and Aine Quinn in London; Editing by Lisa Von Ahn)