The US dollar fell further into the red on Tuesday, with optimism over higher American growth and inflation continuing to fade following a round of disappointing housing data.
The dollar index, a measure of the buck against half-a-dozen major currencies, was recently off by 0.56 per cent, and trading at its weakest level since the days immediately following the election of Donald Trump.
Investors have taken a drearier view on the so-called ‘Trump trade’, with the businessman-turned-politician lodged in deep political controversies that are expected to challenge his ability to pass a pro-growth agenda in the near-term. Mixed economic data have also painted a muddy picture of the US economy, just as the eurozone and other big developed markets are beginning to look brighter.
In fact, the euro climbed by 0.94 per cent against the greenback on Monday to $1.1079, hitting session highs after data on US home building missed expectations. The dollar also extended its fall against the Japanese yen following the data, and was recently off by 0.3 per cent at ¥113.43.
US government bonds also picked up on the day following the data disappointment.