Dollar Drops as Trump’s ‘America First’ Speech Unnerves Traders
- Administration vows in website to scrap trade agreements
- ‘Caution is the theme for the week,’ NAB’s Catril says
Does the U.S. Dollar Have Further to Fall?
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The dollar extended losses from Friday when Donald Trump’s inauguration speech offered scant details on his fiscal policies while emphasizing an “America first” approach to foreign policy, spurring concerns of rising trade protectionism.
The greenback slid as much as 1 percent versus the yen as an Asia-based FX trader said sellers in Tokyo initiated short positions and leveraged accounts followed macro funds to unwind trades that sought to profit from Trump’s pro-growth stance. The U.S. currency slid against all its Group-of-10 peers after the Trump administration vowed in its revamped website to withdraw from the Trans-Pacific Partnership and renegotiate the North American Free Trade Agreement.