The dollar skidded into three-year lows against major currencies in the index early in the session after comment by the U.S. Treasury Secretary, Steven Mnuchin states that he welcomed a weaker currency, on the other hand the euro was firm ahead of the European Central Bank’s policy decision.
The Euro extended its overnight rally to end at $1.2425 which was somehow up by 0.15 percent and going on as high as $1.2428, which is its strongest since December 2014.
The U.S. buck was down after Mnuchin told the World Economic Forum in Davos on Wednesday that “obviously a weaker dollar is good for us as it relates to trade and opportunities.” His comments were seen by markets as a departure from traditional U.S. currency policy.
The greenback had already been repeating that the strong dollar is in the national interest since the late 1990’s, when Robert Rubin held the job in the Clinton administration.
The U.S. currency was o.1 percent lower at 109.105 yen, after sinking 1 percent the previous session to drop a four-month deep end of 108.965. The Dollar Index stretched overnight losses against a basket of six major currencies to sink at 89.064, its lowest level so far since December 2014.
The immediate Focus was on the ECB’s policy setting meeting that is set to occur later.