TOKYO/LONDON - The U.S. dollar stood at a one-year high against major peers on Thursday and headed for a fifth straight daily gain fuelled by higher yields and Donald Trump's election victory in the United States.

The greenback climbed above 156 yen for the first time since July, and was last at 155.85 yen. The euro slumped to its weakest since Nov. 2023 and was last $1.05554 down 0.13%, and sterling hit its lowest on the dollar in three months at $1.2675.

Higher trade tariffs and tighter immigration under the incoming Trump administration are projected to fuel inflation, potentially slowing the Federal Reserve's rate cutting cycle longer term.

These, alongside expectations for deeper deficit spending and higher short term economic growth are lifting Treasury yields, providing the dollar with additional support.

The benchmark 10-year Treasury yield hit 4.483% on Thursday, its highest since July.

The President-elect's Republican Party will control both houses of Congress when he takes office in January, Edison Research projected on Wednesday, giving him wide powers to push his agenda.

"The USD is a magical currency backed by carry, momentum, growth differentials, (and) impending fiscal and tariff kickers," said Chris Weston, head of research at Pepperstone.

"While trends don't last forever, until U.S. economics start to break down, it's likely that an increasingly rich USD position proves to be the primary factor that could cause a tradeable selloff."

The U.S. dollar index, which measures the currency against six top counterparts including the euro and yen, added 0.2% to 106.69, its highest since early November 2023.

The dollar had dipped briefly on Wednesday after a measure of U.S. consumer inflation met economists' forecasts, keeping the Fed on track to reduce rates at their meeting in December, though traders saw this as a buying opportunity.

"We think this week’s price action has given us a taste of what’s to come in FX markets in this second Trump term, with brief dollar corrections - like after yesterday’s U.S. CPI print - taken as an opportunity to enter structural USD longs at more attractive levels," said ING analysts in a morning note.

Cryptocurrency bitcoin also shot to a record high of $93,480 overnight, and, after a brief pullback, was rising back towards that level on Thursday. Trump has vowed to make the United States "the crypto capital of the planet".

Elsewhere, the Australian dollar fell to a three-month low after marginally weaker jobs data, touching $0.6464, but investors assumed the report was far from weak enough to change the Reserve Bank of Australia's steady policy outlook.

The Swiss franc remained under pressure on the dollar, which was up 0.1% at 0.8865 francs, but the alpine safe haven has been firming on the euro. The common currency was last at 0.9361 francs, just off Wednesday's three-week low.

(Reporting by Kevin Buckland in Tokyo and Alun John in London, Editing by Shri Navaratnam and Angus MacSwan)