Forex- Dollar Lower as Trade Concerns Linger

Investing.com – The U.S. dollar slumped against other major currencies on Wednesday, as investors were worried over protectionist policies from U.S. President Donald Trump.

The dollar was held down after White House officials said President Trump was planning on using his speech to the World Economic Forum in Davos on Friday to underline his .

Such policies include a potential withdrawal from the North American free-trade agreement and disavowing the global climate change accord.

The , which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.59% at a fresh three-year low of 89.12 by 11:46 AM ET (16:46 GMT).

The dollar had briefly rebounded after Congress approved a measure on Monday to fund the government, ending the three-day government shutdown.

Elsewhere, the euro was strengthened by expectations that the European Central Bank will exit from its stimulus program. was up 0.71% at a fresh three-yar peak of 1.2384.

The pound was also stronger, with up 1.45% at a fresh 19-month high of 1.4207 after official data on Wednesday showed that the rate held at a 42-year low in November, while wage inflation excluding bonuses unexpectedly increased.

Sterling has been strongly supported in recent sessions by growing optimism around chances the UK could secure a favorable Brexit deal.

The yen and the Swiss franc were stronger, with declining 1.11% to 109.11 and with retreating 1.33% to 0.9450.

Elsewhere, the Australian and New Zealand dollars were also higher, with up 0.81% at 0.8066 and with unchanged at 0.7410.