NEW YORK: The US dollar index traded near a 2-1/2-year low on Monday after weak US jobs data heightened expectations of economic aid, while sterling slumped as Britain and the European Union made a last-ditch attempt to strike a trade deal.
Fears grew of a chaotic no-trade deal Brexit on Dec. 31 when the United Kingdom finally leaves the EU.
"The question for most is whether this is just the beginning of the US dollar slide and whether the theme has more juice," said Mark McCormick, global head of FX strategy at TD Securities in Toronto.
An index that tracks the dollar against a basket of currencies fell 0.2% to 90.6889, not far from 90.471, its weakest since April 2018. Over the past week, the US dollar sell-off has extended further, with weakness most evident against the Swiss franc, euro and Canadian dollar.
The euro rose 0.3% to 1.2157, but remained close to $1.2177, its highest since April 2018. Earlier data showed booming car sales drove a stronger-than-expected jump in German industrial output in October. The British pound was down 0.9% at $1.3321, falling 1.1% versus the euro, which last traded up at 91.08 pence. The dollar fell 0.2% against the yen to 104.01 yen. The Australian dollar rose 0.2% to US$0.7436 versus the US dollar.
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