2017.03.2722:12:00UTC+00Dollar Edges Up but Remains on Shaky Ground

The dollar edged up from multi-month lows against major currencies as the previous day's rout dwindled down, however the greenback remains vulnerable with much of the support from the “Trump trade” now gone.

The dollar index against a basket of major peers inched up 0.1 percent at 99.249 after plunging to 98.858 overnight, its lowest since Nov. 11. The index had increased to a 14-year peak near 104.00 in early January when expectations for inflation-boosting stimulus under the Trump presidency was at its highest. The greenback climbed 0.1 percent to 110.800 yen after its drop to a four-month low of 110.110 overnight.

The euro was slightly lower at $1.0861, a brush away from a 4-½-month high o f $1.906 touched the day earlier. The common currency was bolstered when German Chancellor Angela Merkel's conservatives won a regional election in Saarland, which raised the prospects of her winning a fourth term in the national election.