The US dollar fell to a three-year low against other major currencies on Friday as new concerns about US policy and, in particular, the growing budget deficit dampened the confidence that had come from recent US economic data.
The US currency went down in the face of continuing concerns over the US deficit, which is expected to climb to nearly $ 1 trillion in 2019, after corporate taxes plummeted and a large infrastructure program is planned.
The dollar initially gained in strength after the US Department of Commerce reported Wednesday that consumer prices rose more than expected in January, up 0.5%, boosting US bond yields.
Thursday’s data showed that the US producer price index rose 0.4% last month, in line with expectations.
Rising inflation rates could be the trigger that could push the Federal Reserve to raise interest rates faster this year than previously expected.
The US dollar index, which reflects the strength of the US currency against a weighted basket of six other major currencies, was 0.16% lower at 88:00, at 08:00 CET, its lowest rate since December 2014.
The USD / JPY fell 0.31% to hit 105.79, its weakest level since November 2016, while the USD / CHF fell 0.30% to 0.9196.
The euro and pound were up against the dollar, with the EUR / USD rising 0.27% to 1.2537 and the GBP / USD gaining 0.23% to 1.4128.
The Australian and New Zealand dollars were firmer. The AUD / USD has risen 0.35% to 0.7972 and the NZD / USD has gained 0.22% to 0.7424.
Meanwhile, the USD / CAD fell 0.16% to trade at 1.2469.