Dollar falls on fears of US protectionism

Russell Lynch
The G20’s diplomatic blow to global trade has put the dollar on its worst run since Donald Trump won the White House: REUTERS

The G20’s diplomatic blow to global trade put the dollar on its worst run since Donald Trump won the White House earlier.

The greenback, down 0.16c to $1.2412 against the pound, fell for a fourth day running against a basket of global currencies, the longest losing streak since early November.

Market analysts put the latest decline — and caution in equity markets — down to the weekend’s G20 communiqué, which dropped an explicit statement of opposition to protectionist trade policies.

President Trump has threatened to slap huge import tariffs on countries such as China.

The US Federal Reserve’s less hawkish than expected rhetoric on interest rate rises, despite last week’s policy tightening, is also hanging over the dollar.

“If they are going to push on trade, then you have to expect that the US will want to talk to its major trade partners about where it feels there is unfairness,” said Simon Derrick at Bank of New York Mellon.

The FTSE 100 hit record highs last week but drifted lower earlier. CMC Markets trader Matt Basi said there was “little conviction” in recent gains.

By using Yahoo you agree that Yahoo and partners may use Cookies for personalisation and other purposes