
The U.S. dollar is trading lower Thursday, on track to book its third consecutive losing session, as the global equity rout shows no signs of abating.
The ICE Dollar Index, DXY, -0.32% a measure of the dollar against six of its nearest rivals, is trading down 0.3% to 95.177, a 10-day low.
The greenback, which tends to rise in turbulent times, is suffering from political uncertainty as the public battle between President Donald Trump and the Federal Reserve plays out.
“The USD is buckling under political pressure from Presidents Trump’s “ Fed is crazy” comment, but indeed the severity of this equity rout could bring the hawkish Fed narrative into question,” wrote Stephen Innes, head of APAC trading at Oanda.
Read: What Trump’s tirade against ‘loco’ Fed means for the markets
The Japanese yen, USDJPY, +0.00% arguably the No. 1 haven currency, was trading at ¥112.17 versus ¥112.26 on Wednesday. Earlier in the session, the yen traded below ¥112 to ¥111.98, its lowest level since Sept. 18.
See: Treasury’s Mnuchin warns China against currency devaluation as yuan falls: report
Elsewhere, the euro EURUSD, +0.4514% has continued its revival. After making a three-week low on Monday, the shared currency was trading 0.5% higher at $1.1570 compared with $1.1520 late Wednesday.
“There’s enough risk weighing down the euro to sink a battleship, but the single unit has caught a reprieve from broad-based USD selling rather than any significant shift in EU sentiment. Which makes it a prime target for a beat on tonight’s CPI,” Innes continued.
Further reading: Italy bond yields jump as investors brace for budget clash
The People’s Bank of China set the yuan USDCNY, -0.2094% at 6.9098 per dollar, up 26 basis points from the prior session, inching toward the psychological level at 7.00.
“Amid the continued trade spat between the U.S. and China, more losses are expected in the China yuan with focus on the psychological 7.00 level. Offshore one-year non-deliverable forwards contracts (NDFs), a proxy for forward-looking market expectations of the yuan’s value, trades at 7.0490 and thus confirming a potential move through the 7.00 area,” wrote Justin McQueen, currency analysts at DailyFX.
Check out: Here’s why traders think the Chinese yuan could reach a record low against the dollar
The British pound GBPUSD, +0.2502% is holding steady above $1.32 as concerns around Brexit have been put on the back-burner with all eyes on global equities. The sterling was last changing hands as $1.3213 compared with $1.3192 Wednesday.
The Canadian dollar USDCAD, -0.0842% is trading marginally higher at C$1.3045 compared with C$1.3068 on Wednesday.
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