The U.S. dollar on Monday weakened against a wide range of currencies amid disappointment that President Donald Trump’s inauguration address proved light on detail over his plans for economic stimulus.
Trump’s statements, including his address, that emphasized an “America first” policy, also stoked concern that his presidential platform, painted with a nationalist and protectionist brush, could pose a threat to a recovery in the global economy.
“At the turn of the year, the U.S. dollar was priced for strong growth and rising yields. Now the pendulum is swinging towards trade wars and slower growth,” said Sean Callow, currency strategist at Westpac.
The WSJ Dollar Index BUXX, -0.55% a measure of the U.S. currency against 16 others, was down 0.5% at 91.11. The U.S. Dollar Index DXY, -0.36% which gauges the greenback against six currencies, declined 0.4% to 100.33.
“Trump’s stated preference for a weaker dollar and his intense focus on U.S. trade, clashes with the promised 4% growth rate that would send yields and the U.S. dollar sharply higher,” he said.
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