Down, down, down. That sums up the greenback’s recent run, with investors eyeing tepid economic data and political uncertainty swelling in Washington.
The buck was off 0.5 per cent against six world currencies, leaving it trading at levels not seen since Donald Trump’s shock election victory in November.
The gauge recently traded at 97.58, which would be the lowest level on a daily fix basis since November 4, according to Bloomberg data. It had traded as high as 103.8 in December.
Investors have soured on the buck as Mr Trump has found himself stuck in a series of political scandals that are broadly expected to weigh on his ability to enact measures that were expected to ramp up economic growth and inflation.
Meanwhile, US economic data have been choppy at a time when other trading partners, particularly the eurozone, are experiencing a brightening in sentiment.
“(I)ncreasing doubts over President Trump’s ability to proceed with his economic policies will likely hurt [dollar] momentum for the time being, even though expectations for bold US economic policy had already declined before this,” said Jordan Rochester, an analyst at Nomura.
The yen’s performance against the dollar was particularly strong on the day, with the buck off 1.5 per cent to ¥111.37. The Japanese currency tends to perform well during times of higher geopolitical tension. Meanwhile, the euro gained 0.5 per cent on the dollar, and the UK pound rose 0.16 per cent.