Dec 30 Reuters The Japanese yen edged up slightly from fivemonth lows on Monday and the dollar held onto its dominant position, as global currencies headed to the end of a year characterised by diverging central bank outlooks.

The dollar index , which measures the greenback against a basket of six other major currencies, was down 0.1 at 107.86 on the day. It has kept around the 108level after touching a twoyear peak of 108.54 on Dec. 20.

Underpinned by rising U.S. yields and expectations for U.S. rates to stay higher for longer, the dollar index is up 2 in December, bringing yeartodate gains to 6.35.

Despite paid forecasters almost universally calling for a weaker U.S. dollar in 2024, the greenback looks set to close the year higher against all major currencies with the buck reigning supreme, Chris Weston, head of research at Pepperstone, said.

The dollar has gained in each of the last three months, with traders expecting Presidentelect Donald Trump39;s policies of looser regulation, tax cuts, tariff hikes and tighter immigration to be both progrowth and inflationary, which will likely keep U.S. yields elevated.

U.S. 10year Treasury yields hit a more than sevenmonth high last week. The yield hovered close to that mark on Monday, at 4.593.

The yen was slowly ticking up from recent fivemonth lows, and strengthened 0.16 to 157.55 per dollar on Monday , with the risk of Japanese intervention preventing another test of the 160 level last seen in July.

The dollar has…