On Monday, the greenback drops against a basket of other major currencies as immigration, boundaries put in place by President Donald Trump highlighted worries about the economic influence of the new administration’s policies.
In the European morning trade on Monday , gold prices increases, starting the week off with gains as the dollar declined.
On Friday, Trump executed a travel ban on seven Muslim-majority countries and presented measures to stop refugees from entering the U.S.
The order generated legal challenges, widespread protests, international criticism and confusion over its execution at airports.
It also added worries over the potential destabilizing impact of the current administration’s protectionist policies.
The greenback also remained under pressure after Friday’s weaker than expected figures on U.S. 4th quarter development reduced expectations for a faster rate of interest rate hikes this year.
The U.S. dollar index was at 100.52 after declining to overnight lows of 100.14.
The yearly rate of economic growth reduced to 1.9% in the three months to December, the Commerce Department reported, declined sharply from the 3.5% rate of growth seen in the 3rd quarter.
In 2016, the economy grew just 1.6% as a whole, it is the sluggish rate of growth since 2011.
The decreased in growth prompted assumption that the Fed Reserve will avoid hiking interest rates too quickly.
Compared to the yen the dollar was lower, with USD/JPY down -0.31% at 114.740, 7:36 AM (EST).
The euro and the pound slightly changed against the dollar, with EUR/USD at 1.0638 and GBP/USD at 1.2500 7:18 AM Eastern Time.
On late Friday, USD/MXN declined 1.5% to 20.89, the lowest level since January 2.
On Friday, Trump and Mexican President Enrique Pena Nieto spoke on the phone, a day after the Mexican president withdraw a planned meeting over Trump’s demand that Mexico pay for a multibillion dollar border wall. Mexico declares it will not pay for the wall.
In the week onward, markets will be giving more attention to Friday’s U.S. nonfarm payrolls report for January along with Wednesday’s policy statement by the Fed Reserve.
Investors will also be observing central bank meeting in Japan and the UK.
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