Investors turn away from weakening US economy and erratic policy after Trump repeats tariff threats
The dollar sank to its lowest level in more than three years on Thursday and the FTSE 100 closed at a record high as Donald Trump’s latest trade threats and the weakening economy appeared to bring forward interest rate cuts by the Federal Reserve.
Foreign exchange traders sold the dollar in favour of the yen and the euro, which both climbed by about 1% against the US currency to leave it almost 10% down on its value against a basket of currencies since the beginning of the year.
In London, the FTSE 100 ended the day at 8,884 points, above the previous closing high of 8,871 points set on 3 March this year, as investors looked for alternatives to US company shares.
Analysts said there was little appetite to buy dollars at a time when recent data showed the jobs market weakening and while erratic White House policies clouded the outlook for the US economy.
