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Forex - Dollar wallows near 7-week lows on Trump uncertainty

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Investing.com - The dollar was trading close to seven-week lows against a basket of the other major currencies on Tuesday, as concerns over President Donald Trump's protectionist economic policies 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 0.2% at 100.16, after falling to 99.88 overnight, its lowest since December 8.

On Monday, Trump formally withdrew the U.S. from the Pacific Rim Trans-Pacific Partnership (TPP), distancing America from its Asian allies.

He also said he intends to renegotiate the NAFTA free trade agreement between the U.S., Canada and Mexico.

The fall in the dollar reflected concerns over a lack of clarity on Trump's economic policies and fears that his protectionist stance could hit corporate profits and act as a drag on growth.

The dollar pushed higher against the yen, with USD/JPY rising 0.45% to 113.20, after falling to an overnight low of 112.53.

The euro slid, with EUR/USD dipping 0.15% to 1.0749.

In the euro zone, survey data on Tuesday showed that business activity got off to a strong start to the year, with employment rising at the fastest rate since 2008.

Meanwhile, the pound was lower, with GBP/USD down 0.22% to 1.2502, off Monday's two-month highs of 1.2536.

Sterling retreated ahead of a 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.

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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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