LONDON, Nov 7 Reuters The dollar held near fourmonth highs on Thursday, having scored its biggest oneday rally in two years following Donald Trump39;s win in the U.S. presidential election, and as investors prepped for several central bank decisions including the Federal Reserve.

Sterling rallied ahead of a Bank of England meeting, while the Swedish and Norwegian crowns edged up after inline decisions from their respective central banks.

Front and centre, however, was the dollar, which rose by as much as 2 at one point against a basket of currencies on Wednesday , as investors piled into U.S. assets that they expect would benefit from Trump39;s proposed policies on tariffs and taxes.

Trump39;s win is unlikely to make any immediate difference to the Fed, which is expected to cut interest rates by 25 basis points later in the day. So investors will start to look to who Trump39;s key appointees might be, as well as whether or not his Republican party wins both chambers of Congress in a Red sweep, which could dictate how easily he may enact some of his proposals.

If there is, then we will probably, in the market collectively, conclude he will get more of his fiscal agenda through. And that could be dollarsupportive, Rabobank currency strategist Jane Foley said.

There is going to be a lot of back and forth to try and work out exactly what is the inflation impact of this going to be, and therefore, how is the Fed going to react? But, generally speaking, I think all of…