Dollar hits 1-month lows after Trump press conference

Dollar hits 1-month lows after Trump press conference
Thursday, January 12, 2017 - 08:52 - The dollar was fell to one-month lows against a basket of the other major currencies on Thursday after Donald Trump failed to address economic and fiscal policies in his first formal news conference as U.S. president-elect.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.8% to 100.89, the lowest level since December 14.

Trump disappointed investors who had been hoping he would outline in more detail his proposed plans for fiscal stimulus, infrastructure spending and tax reforms.

Instead, the U.S. president-elect criticized U.S. intelligence agencies and the pharmaceutical industry, sending healthcare related shares into a brief slide.

Trump has been credited with being a major catalyst behind the rally in the dollar and stocks since his surprise presidential election win in November, although he has yet to outline his economic policies in detail. He is due to take office on January 20.

The dollar dropped to one-month lows against the perceived safe-haven yen, with USD/JPY down 1.3% to 113.86.

The euro, which plumbed 14-year lows last week, advanced 0.7% to 1.0659.

Sterling was also higher, with GBP/USD climbing 0.77% to 1.2305, recovering from Wednesday’s two-month trough of 1.2036.

The Mexican peso also regained some ground against the softer dollar, with USD/MXN down 0.56% to 21.73, off Wednesday’s record highs of 22.03.

The peso touched fresh lows on Wednesday after Trump warned U.S. auto companies that they would face high taxes on products made in the Latin American country.

© Reuters.

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