Dollar slides in foreign exchange trading following G20 draft

The US dollar slipped against a range of currencies in foreign exchange trading on Friday (September 25th) following the release of a draft communique from the G20 leaders stating measures to stimulate the global economy will remain in place, reports suggest.

However, the dollar was not the only currency to drop in foreign exchange trading, as sterling dropped to new lows against the dollar and the euro, news agency Reuters reports.

Gains made in trading yesterday following the end of the Federal Reserve's latest meeting were pared back in early trading.

Commerzbank senior currency strategist Michael Klawitter told the news provider: "The [G20] is making clear that stimulus will stay in place until a recovery is sustainable."

Further to this, he suggested interest rates for a range of currencies are likely to remain low for some time to come.

While sterling also suffered drops, it remains above levels it fell to early in the year, when it was valued at less than $1.50. Currently, it stands at around $1.60.