Amidst ongoing issues regarding declining crude oil prices and issues with Trump revealing classified information to Russia’s top diplomat, the dollar hit a six-month low continuing from a recent snag the currency has hit in the past week.
Reports claimed that classified U.S. information was revealed by U.S President Donald Trump to a Russian diplomat which shook the markets sending the greenback to
Aside from these concerns, uncertainty regarding Trump’s plan to boost infrastructure spending and cut taxes for businesses also grows.
The greenback which slid on Monday as oil prices jumped on market hopes that the OPEC’s extension of the production cap deal would further help stabilize oil prices and help avoid global oversupply. The crude oil’s rise was also driven by Russia and Saudi Arabia’s willingness to extend production cuts.
Dollar Vs Other Currencies
The US dollar index slumped by 0.4% at 98.46 on Tuesday as the markets reacted negatively to the recent Trump news on top of the disappointing economic growth in the United States.
The greenback has started to move lower as early as last week as last week on data that showed disappointing retail sales in April and inflation that missed analysts estimates.
By late afternoon, Asian markets have started to sell the U.S. dollar and moved into the euro which rose by 0.7% against the dollar.
The euro recorded its highest in the past six months and its first time to go over 1.10 as traders expected a much more positive European growth rate. The currency gained the most from the greenback’s decline with the U.S. market shaky from the beginning on doubts that the U.S. Federal Reserve will not live up to expectations from the markets of another interest rate hike.
The dollar also slumped against a couple of major currencies including the Japanese yen rising 0.1% to 113.71 per dollar following a 0.4% decline on Monday.
The ICE dollar also inched lower after the Canadian dollar rallied on upbeat OPEC and crude oil news. Other countries which rose against the US dollar on the OPEC news like the Brazilian real, Australian dollar, and Norwegian krone which slightly rose against the dollar.
The dollar is currently at its lowest levels since the elections last November and is expected to decline further given the lack of signs in the implementation of Trump’s infrastructure plans. Lack of updates regarding the corporate tax cuts the president promised has also weakened sentiments against him and has led the dollar to slump.