US dollar fell to a 6-week low

23.01.2017

On Monday, the US dollar fell against a basket of other major currencies amid uncertainty about the further economic policy details of the US President Donald Trump and concerns about its protectionist statements.

The US Dollar Index, which shows the value of the dollar against a trade-weighted basket of six major currencies, at the beginning of the trading session, was down by 0.44% to 100.33 - the lowest value since December 8.

Since the winning of Trump in the November election, the dollar index rose 3.5% on expectations that lower taxes and increase spending on infrastructure projects will enhance the growth of the US economy, fuel inflation and will lead to higher interest rates.

However, over the past month the dollar index fell 1.9% due to the lack of certainty about the future economic policy of Trump, as well as concerns about protectionist statements and his recent statements about the excessively high rate of the American currency.

On Friday, Trump said that his administration would put the US interests first, and promised the construction of new roads, bridges and highways.

However, market sentiment was spoiled by the general negative tone of the speech, which reinforced concerns about management practices used Trump.

The dollar fell sharply against the Yen: USD/JPY pair is trading at 113.55, down 0.94%.

The euro rose against the dollar, hitting a 5-week high. EUR/USD went up by 0.36% to 1.0740.

The pound sterling also rose against the dollar to a 5-week high: GBP/USD has risen in price by 0.59% to 1.2444.

The course of the Mexican peso rose as Trump did not mention Mexico in the inauguration speech.

USD/MXN fell by 0.85% to 21.40, down 1.64% compared with the closing of the previous session.

The course of the Mexican peso dropped significantly on fears regarding changes in US trade policy of the new Trump administration.

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