SINGAPORE: The dollar retreated to its lowest level in a week in early trading on Monday after threats from the White House towards the European Union over the future of Greenland triggered a broad selloff across U.S. stocks and government bonds.
The dollar index, which measures the greenback’s strength against a basket of six currencies, slid 0.1% to 99.004 – its lowest level since Jan 14 as investors worried about exposure to US markets.
On Monday, US President Donald Trump’s renewed tariff threats against European allies triggered a repeat of the so-called “Sell America” trade that emerged after last year’s Liberation Day tariff announcement in April, with stocks, Treasury bonds and the dollar all selling off. US markets will return on Tuesday following a public holiday for Martin Luther King Jr Day.