NEW YORK (TheStreet) -- The dollar is continuing to rally on Friday, staying at its highest level since 2003, thanks to investor optimism that U.S. growth will rise under President-elect Donald Trump. He has vowed to increase fiscal spending and lower taxes.
Also helping the dollar today are remarks from Federal Reserve chair Janet Yellen, who gave a speech on Capitol Hill Thursday, in which she said the Fed could raise rates "relatively soon."
"I think what we're looking at is an adjustment of Fed expectations and comments that there might be a lot more going on in 2017 than we anticipated," Path Trading Partners' Bob Iaccino said on CNBC's "Halftime Report" today.
This is more than a rise from president-elect inflation, he continued. There have been green shoots from the economy including a 25.5% increase in housing starts.
"We've got the Dow Jones transports up 15 of 18 days, so there's definitely other things going on. You add that into Trump's potential inflationary policies and you're seeing a rejiggering of Fed expectations, I'm looking for 104.50 in the dollar index," Iaccino said.