(Updates prices, adds comments; changes byline, dateline,
* Dollar nears multi-week low vs yen
* Peso hits record low vs dollar of 21.6250 pesos
* Traders lighten long-dollar bets
By Sam Forgione
NEW YORK, Jan 10 The U.S. dollar edged lower
against a basket of major currencies on Tuesday on nervousness
ahead of U.S. President-elect Donald Trump's first news
conference set for Wednesday, while the Mexican peso hit a
Investors fretted that Trump, who takes office on Jan. 20,
could shake markets at the news conference by taking an
aggressive line on issues such as trade policy and relations
The dollar index, which measures the greenback
against a basket of six major currencies, has climbed 4 percent
since Trump's election on Nov. 8 as investors have bet his
promised program of fiscal expansion will boost inflation and
growth, leading to a faster pace of interest rate rises from the
Speculators had boosted net long bets on the dollar for a
third straight week in the week ended Jan. 3, data from the
Commodity Futures Trading Commission and calculations by Reuters
showed on Friday.
Uncertainty ahead of Trump's comments, however, dampened
demand for the dollar. Analysts also said traders were watching
hearings for the Republican president-elect's choices for senior
administration posts, which started on Tuesday with U.S. Senator
Jeff Sessions, picked for attorney general.
"We're in a political event risk this week," said Mazen
Issa, senior currency strategist at TD Securities in New York.
"Markets pretty much are in a holding pattern right now."
The dollar index was last down 0.18 percent at 101.750. The
index hit a 14-year high on Jan. 3 of 103.820. The greenback
fell as much as 0.7 percent against the yen to 115.21 yen
, near Friday's more than three-week low of 115.04 yen.
The euro, which hit an 11-day high of $1.0626 in
early trading, was last up 0.15 percent at $1.0588.
The Mexican peso hit a new record low against the dollar of
21.6250 pesos as traders avoided exposure to the
currency ahead of Trump's news conference. The peso has fallen
on worries over the prospect of Trump's protectionist policies.
"Mexico remains the primary victim of the election result,
and I anticipate we'll see more of it," said David Gilmore,
partner at FX Analytics in Essex, Connecticut.
Sterling steadied after hitting $1.2107 in early
trading, its lowest level since Oct. 25, and was last up
slightly at $1.2166.
Sterling had fallen on disquiet over whether Britain will
undergo a "hard" exit from the European Union, in which
immigration controls get priority over access to the single
(Reporting by Sam Forgione; Additional reporting by Jemima
Kelly in London; Editing by Will Dunham)