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Forex - Dollar near 7-week lows as US protectionism concerns weigh

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Investing.com - The dollar was trading near seven-week lows against a currency basket on Thursday as concerns over President Donald Trump's protectionist stance continued to weigh.

The U.S. dollar index, which measures the greenback's strength against a trade-weighted basket of six major currencies, was up 0.9% at 100.01 after falling to overnight lows of 99.77, its weakest level since December 8.

The index has fallen around 2% so far this month, pressured lower by concerns over a lack of clarity on Trump's economic policies and fears that his protectionist trade stance could hit corporate profits and act as a drag on growth.

On Wednesday, Trump gave the go-ahead to construction of a U.S.-Mexican border wall and prepared to impose curbs on immigration.

The dollar pushed higher against the safe haven yen, with USD/JPY rising 0.32% to 113.66, holding above the seven-week lows of 112.51 set on Tuesday.

The euro edged lower, with EUR/USD dipping 0.12% to 1.0737, not far from Tuesday's seven-week highs of 1.0773.

The pound hit fresh seven-week highs against the dollar, with GBP/USD rising 0.21% to 1.2660.

Data on UK fourth quarter growth is due out later Thursday, and economists are expecting another quarter of solid growth, with GDP expanding by 0.5%.

Hopes for clarity on Brexit plans also buoyed sterling, after the government said it would publish draft legislation later Thursday seeking parliament's approval to trigger Article 50 and begin exit talks with the European Union.

The Mexican peso was higher against the dollar, with USD/MXN down 0.21% at 21.02.

The peso ended Wednesday's session with gains of 2.1%, confounding investors after Trump signed orders to authorize the border wall and clamp down on immigration.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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