Markets

Forex - Dollar steady as investors assess Trump policy outlook

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Investing.com - The dollar was steady against a currency basket on Wednesday as investors continued to assess the outlook for economic policy under the Trump administration, amid concerns over the president's protectionist stance.

The U.S. dollar index, which measures the greenback's strength against a trade-weighted basket of six major currencies, was little changed at 100.25.

The index fell to lows of 99.88 on Monday, its weakest level since December 8, amid concerns over a lack of clarity on President Trump's economic policies and fears that his protectionist trade stance could hit corporate profits and act as a drag on growth.

The dollar was lower against the safe haven yen, with USD/JPY down 0.25% to 113.52 after nearing the 114.00 level overnight.

In Japan, data on Wednesday showed that exports rose for the first time in 15 months in December, giving a boost to the export driven economy.

The euro was steady, with EUR/USD at 1.0730, off the seven-week highs of 1.0773 set in the previous session.

Sterling was also little changed against the greenback, with GBP/USD at 1.2520.

The pair fell to lows of 1.2417 on Monday following a British Supreme Court ruling that the government will need parliamentary approval before triggering the process the exit the European Union.

However, the government will not have to consult the devolved parliaments of Scotland, Wales or Northern Ireland, removing a possible hurdle to Brexit.

The Australian dollar was sharply lower, with AUD/USD down 0.71% at 0.7526 after subdued domestic inflation data rekindled expectations for an interest rate cut.

The New Zealand dollar was also lower, with NZD/USD off 0.18% at 0.7236.

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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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