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Dollar drops as investors shift focus towards haven assets
(MENAFN) The dollar fell in early trading on Wednesday, retreating further from the gains attributed to the so-called "Trump trade." This trend, which had been driven by market expectations of protectionist policies under US President-elect Donald Trump, is now facing growing skepticism. Traders are increasingly shifting focus toward traditional haven assets like gold amid fears of an expanding war in Europe.
The US dollar declined to a one-week low, extending a three-day slide from its recent two-year high. This pullback has provided major currencies with some relief after a sharp rally in the aftermath of Trump’s victory. The combination of geopolitical tensions and economic uncertainties is dampening the earlier optimism tied to Trump's policy outlook.
Meanwhile, the dollar index, which tracks the performance of the greenback against six major currencies, dropped 0.15 percent to 106.2 points. This follows a dip to 106.07 points earlier in the session, marking its lowest level since last Wednesday. The shift highlights a weakening in the dollar’s momentum after its strong rally.
Last week, the index had climbed to a one-year high of 107.07, briefly spiking to 107.16 points, its highest level in two years. However, concerns about inflation and broader economic challenges are now weighing on the dollar, leading to cautious trading as markets adjust to evolving global conditions.
The US dollar declined to a one-week low, extending a three-day slide from its recent two-year high. This pullback has provided major currencies with some relief after a sharp rally in the aftermath of Trump’s victory. The combination of geopolitical tensions and economic uncertainties is dampening the earlier optimism tied to Trump's policy outlook.
Meanwhile, the dollar index, which tracks the performance of the greenback against six major currencies, dropped 0.15 percent to 106.2 points. This follows a dip to 106.07 points earlier in the session, marking its lowest level since last Wednesday. The shift highlights a weakening in the dollar’s momentum after its strong rally.
Last week, the index had climbed to a one-year high of 107.07, briefly spiking to 107.16 points, its highest level in two years. However, concerns about inflation and broader economic challenges are now weighing on the dollar, leading to cautious trading as markets adjust to evolving global conditions.
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