Dollar stumbles as traders gear up for European session

Currency markets have been given a shake, with the greenback taking a tumble as investors gird themselves for the European session while the broad Trump rally hits the buffers.

Having closed below 100 on Tuesday for the first time since early February, the US dollar index spent the Asian session today flicking in and out of positive territory. But it has since taken a turn, dropping as much as 0.2 per cent to 99.62.

Among the gainers, the British pound briefly popped above $1.25. The big winner, though, is Japan’s yen. (Although a winning day for the yen typically feels like a losing one for Japanese exporters.)

The yen is 0.2 per cent stronger at ¥‎111.47 per dollar, and had been as strong as ¥‎111.33. The currency is on track for a seventh-straight day of gains against the dollar, which would be its equal-longest winnings streak this year.

In a rough day for Asian equities markets, Japan’s Topix sank 2.2 per cent and Australia’s S&P/ASX 200 closed 1.6 per cent lower. These were the biggest one-day falls for the two indices since the US presidential election.

Hong Kong’s Hang Seng was down 1.4 per cent in late trade, while China’s Shanghai Composite shed 0.5 per cent.