The dollar fell for the fourth day running against the basket of currencies used to measure its broader strength on Monday, as a reaction to a G20 summit dominated by the Trump administration's protectionist bent extended last week's sales.
World markets balked on Monday at the G20's decision to drop a decade-old pledge to resist trade protectionism, with stocks, the dollar, oil and the price of many major sovereign bonds all sliding into the red.
The world's financial leaders will renounce competitive devaluations and warn against exchange rate volatility, but they have not yet found a common stance on trade and protectionism, a draft statement of their meeting in Germany showed on Friday.
A proposal to overhaul the U.S. tax code that favors exports over imports could have spillover effects to other economies as it would strengthen the dollar, International Monetary Fund (IMF) chief economist Maurice Obstfeld said on Monday.
A draft communique prepared for next week's gathering of G20 finance chiefs has dropped the group's standard pledges on the need for flexible yet stable exchange rates and orderly markets, suggesting it could prove a landmark event for currency markets.
The world's financial leaders may no longer explicitly reject protectionism or competitive devaluations of currencies, a draft communique of their meeting next week showed, promising only to keep an open and fair international trading system.
The financial system's ability to cope with Britain's vote to leave the European Union and with doubts over growth prospects show the benefits of rules introduced since the 2008 collapse of Lehman Brothers bank, a global watchdog said today.