U.S. dollar touched its weakest level in three years as euro rises on the back of ECB’s decision

Dollar index

The U.S. dollar dropped to its weakest level since December against its major opposing currencies on early Wednesday after the euro’s decline amid the political uncertainties surrounding the German government.

The index which measures the value of the greenback against its major peers, the U.S. dollar index, briefly recovered at 90.826 on the previous trade. It steadily fell this month due to the projections of investors that several central banks will soon stabilize their bond portfolios. The index was last seen down at 90.158 after notching a three year low of 90.113.

However, the dollar’s rebound was limited due to the fundamental expectations that have been weakening the currency this 2018. Daiwa Securities senior currency strategist Yukio Ishizuki said the perspectives of the participant from the market is that the whole world is heading for the stabilization of monetary policies. He added that these projections would continuously weaken the dollar.

The greenback inched down against its Japanese counterpart by 0.05 percent at 110.415 yen after managing to jump on the previous trade at 110.985. It is currently on its way to a four-month low of 110.245 notched last Monday.

In other currency news, the euro edged up by 0.3 percent at $1.2296, recouping from its losses overnight. On Tuesday, the common currency immediately declined after the released news that showed the European Central Bank (ECB) will not wind down monetary policy due to the currency’s recent rally.

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