Forex Market News Feed - Dollar Hits New 3-Year Low subsequent to mention to Mnuchin Remarks, Euro Eyes ECB
The dollar fell to a light three-year low neighboring a currency basket upon Thursday, a day after the Trump administration signaled that it preferred a weaker currency, even though the euro was steady ahead of the European Central Banks policy decision.
The U.S. dollar index, which trial the greenback's strength methodical of a trade-weighted basket of six major currencies, was at 88.93 by 03:33 AM ET (08:33 AM GMT), after hitting an overnight low of 88.62, a level not seen past December 2014.
The dollar skidded demean after U.S. Treasury secretary Steven Mnuchin told the World Economic Forum in Davos upon Wednesday that a weaker dollar is affable for trade.
The notes were seen by markets as a departure from traditional U.S. currency policy.
His explanation, along as soon as this weeks decision by President Donald Trump to impose import tariffs upon washing machines and solar panels reignited concerns anew his administration's protectionist stance and its doable impact upon global trade.
The risk of a weaker dollar is that it could undermine confidence in a broad swath of U.S. assets, including the U.S. Treasury freshen.
The dollar was lower closely the yen, gone USD/JPY last at 109.12 falling to a four-month trough of 108.72 overnight.
The euro was steady, once EUR/USD at 1.2410 after rising as tall as 1.2459 overnight, the strongest level past December 2014.
Market watchers were looking ahead to the result of the ECB's policy meeting higher in the hours of the morning for feasible insights into after that shifts in monetary policy.
Sterling was furthermore steady, once GBP/USD at 1.4244 after upsetting an open adding occurring-Brexit high of 1.4328 overnight, boosted by Wednesdays upbeat UK employment data.
The Australian and New Zealand dollars were far ahead adjoining their U.S. counterpart when AUD/USD rising 0.19% to 0.8074 and NZD/USD climbing 0.23% to 0.7352.
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