The dollar slid broadly lower on Tuesday as the euro rebounded and the pound rose to the day’s highs following reports that British Prime Minister Theresa May will take control of Brexit negotiations.
The U.S. dollar index, which measures the greenback’s strength against a basket of six major currencies, was down 0.21% to 94.22 by 10:52 AM ET (14:52 GMT).
Expectations that the Federal Reserve will stick to plans for further gradual rate hikes this year as the economy continues to strengthen supported the outlook for the dollar.
The dollar has come under pressure after U.S. President Donald Trump launched an attack on the U.S. central bank last week, claiming that their plans to raise U.S. interest rates risked undermining his efforts at strengthening the economy.
Trump also claimed that tighter monetary policy was penalizing the U.S. by contributing to a stronger dollar.
The euro pushed higher, with EUR/USD rising 0.14% to 1.1707, up from an earlier low of 1.1655.
The euro’s gains were held in check after data showing that growth in the euro zone private sector slowed slightly this month, indicating that the region’s economy started the third quarter on a softer footing.
The pound rose to the best levels of the day, with GBP/USD climbing 0.34% to 1.3146 after British Prime Minister Theresa May said in a statement that she will lead Brexit negotiations with the European Union, while the Brexit department will instead focus on preparations for a no-deal Brexit.
The dollar was also lower against the yen, with USD/JPY down 0.27% to 111.03.
The Japanese currency had been boosted on Monday by reports that the Bank of Japan is actively discussing changes to its massive monetary stimulus program. The BoJ is due to hold its next policy meeting at the end of the month.
Elsewhere, the try currency tumbled with USD/TRY jumping 3.03% to 4.8838 after the country’s central bank kept interest rates on hold, surprising financial markets which had widely expected a rate hike.
The decision added to concerns that Turkish President Recep Erdogan is undermining central bank independence, as he pushes for lower interest rates.
The U.S. dollar index, which measures the greenback’s strength against a basket of six major currencies, was down 0.21% to 94.22 by 10:52 AM ET (14:52 GMT).
Expectations that the Federal Reserve will stick to plans for further gradual rate hikes this year as the economy continues to strengthen supported the outlook for the dollar.
The dollar has come under pressure after U.S. President Donald Trump launched an attack on the U.S. central bank last week, claiming that their plans to raise U.S. interest rates risked undermining his efforts at strengthening the economy.
Trump also claimed that tighter monetary policy was penalizing the U.S. by contributing to a stronger dollar.
The euro pushed higher, with EUR/USD rising 0.14% to 1.1707, up from an earlier low of 1.1655.
The euro’s gains were held in check after data showing that growth in the euro zone private sector slowed slightly this month, indicating that the region’s economy started the third quarter on a softer footing.
The pound rose to the best levels of the day, with GBP/USD climbing 0.34% to 1.3146 after British Prime Minister Theresa May said in a statement that she will lead Brexit negotiations with the European Union, while the Brexit department will instead focus on preparations for a no-deal Brexit.
The dollar was also lower against the yen, with USD/JPY down 0.27% to 111.03.
The Japanese currency had been boosted on Monday by reports that the Bank of Japan is actively discussing changes to its massive monetary stimulus program. The BoJ is due to hold its next policy meeting at the end of the month.
Elsewhere, the try currency tumbled with USD/TRY jumping 3.03% to 4.8838 after the country’s central bank kept interest rates on hold, surprising financial markets which had widely expected a rate hike.
The decision added to concerns that Turkish President Recep Erdogan is undermining central bank independence, as he pushes for lower interest rates.
USD/TRY jumping 3.03% to 4.8838
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