Dollar under broad pressure from growing doubts on Trump trade

FT/Michael Hunter & Hudson Lockett/07-18-17

The weaker dollar is standing out front and centre on global markets as doubts about the Trump administration’s ability to enact its pro-growth policies of tax cuts and fiscal stimulus follow the demise of set-piece legislation to repeal Obamacare.

There is broader concern that the fillip given to global stocks by the prospect of reflationary policies in the US could have run too far, hitting European stock indices, although sovereign debt markets are calm, with yields holding steady.

…The dollar index, a trade-weighted measure of the US currency, dropped to its lowest level since September 2016, down 0.5 per cent at 94.629.

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