SINGAPORE/SYDNEY (BLOOMBERG) - The US dollar extended Friday's losses after Donald Trump's inauguration speech offered scant details on his fiscal policies while emphasizing an "America first" approach to foreign policy, spurring concerns of rising trade protectionism.
The dollar slid to S$1.4188 as of 11am, 0.8 per cent weaker than its close on Friday of S$1.4300.
It also dropped as much as 0.8 per cent versus the yen as Tokyo sellers initiated short positions and leveraged accounts followed macro funds to unwind trades that sought to profit from Trump's pro-growth stance, according to an Asia-based forex trader.
All Group-of-10 currencies rose against the dollar.
"Caution is the theme for the week as the market will be very susceptible to Trump and his team's policy announcements," said Rodrigo Catril, a currency strategist at National Australia Bank Ltd. in Sydney.
"Whether Trump achieves prosperity for America remains to be seen. From a global perspective, while his policies could result in America getting a bigger share of the pie, the pie is unlikely to become bigger if global trade declines."
With additional information from The Straits Times