Investing.com - The dollar fell to six-week lows against a basket of the other major currencies on Monday at the start of President Donald Trump's first full week in office amid a lack of clarity on his economic policies.
The U.S. dollar index, which measures the greenback's strength against a trade-weighted basket of six major currencies, was down 0.48% to 100.28, the lowest level since December 8.
The index climbed around 3.5% since Trump's election win in November, buoyed by expectations that his pledges to cut taxes and hike infrastructure spending would spur growth in the U.S. economy, leading to inflation and a faster pace of interest rate hikes.
But the index has fallen 1.9% so far this month as the lack of economic policy detail, coupled with concerns over his protectionist rhetoric weighed.
In his inauguration speech on Friday, Trump said his administration would put "America first" and also promised new roads, bridges and highways.
But market sentiment was hit by the negative tone of the speech, which underlined uncertainty over how Trump will govern.
Investors were looking ahead to the first official Trump administration press briefing later Monday, due at 13.30 ET.
The dollar was sharply lower against the traditional safe haven yen, with USD/JPY trading at 113.44, off 1.04% after touching overnight lows of 113.17.
The euro rose to five-week highs against the dollar, with EUR/USD climbing 0.32% to 1.0736.
Sterling also hit five-week highs as the dollar sold off, with GBP/USD up 0.64% to 1.2452.
Traders were looking ahead to Tuesday's U.K. Supreme Court ruling on whether the government will need parliamentary approval to initiate Britain's exit from the European Union by triggering Article 50 of the Lisbon Treaty.
Meanwhile, the Mexican peso added to Friday's strong gains after Trump's inauguration speech didn't specifically mention Mexico.
USD/MXN was down 1.11% at 21.35 after ending Friday's session down 1.64%.
The Mexican peso has been hard hit by fears over potential changes to U.S. trade policy under the Trump administration.
Elsewhere in emerging markets, the Turkish lira remained under pressure ahead of a critical central bank meeting on Tuesday, after a steep decline in the currency since the start of the year.
USD/TRY was trading at 3.7756, up 0.19% from Friday's close.
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