Dollar drops to 2009 low

The dollar has fallen to is lowest level against the euro in trading today, on the back of low borrowing in the US.

As a result, investors opted to sell the currency in favour of assets with higher returns, Bloomberg reports.

According to the news agency, earlier gains following concerns over a US-China tariff dispute were wiped out as trading continued.

Global head of foreign exchange strategy at HSBC Holdings in London David Bloom told the news provider: "The low interest rate structure for many years to come in the US is going to start undermining the dollar."

The euro also strengthened against the dollar and the pound as foreign exchange investors shied away from the negative outlook continuing to affect the UK.

Reuters reports that the investors were becoming increasingly willing to take on more risk.

Other foreign exchange currencies, notably the Japanese yen, remained relatively unchanged during the trading period.

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Written by Neil Waterman