Investing.com - The dollar sank to the lowest level since mid-November against a basket of other major currencies on Thursday, amid growing concern about the potential impact of the Trump Administration’s protectionist stance.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, fell to a daily low of 99.20, a level not seen since November 14.
It was last at 99.25 during New York morning hours, down around 0.5%.
Investors are nervous about what is coming next from U.S. President Donald Trump, especially after his comments earlier this week suggesting he favors a weaker dollar.
"Every other country lives on devaluation," Trump said. "You look at what China's doing, you look at what Japan has done over the years. They -- they play the money market, they play the devaluation market and we sit there like a bunch of dummies."
Trump comments came after his top trade adviser Peter Navarro criticized Germany, Japan and China, saying the trading partners were engaged in devaluing their currencies to U.S. disadvantage.
Rattled by factors including Trump's protectionist trade rhetoric and tough stance on migration, the dollar index lost 2.6% in January, its worst start to a year in three decades.
Headlines from Washington will continue to dictate market sentiment as traders focus on Trump for further details on his promises of tax reform, infrastructure spending and deregulation as well as trade policies.
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