G20 leaders fail to reach compromise, dollar on the defensive

The dollar dropped to a five-week trough on Friday, and stayed under pressure for a third consecutive session following the Federal Reserve decision of keeping a gradual pace to its monetary policy tightening. The FOMC decision dampened hopes for further gains for the greenback.

Financial leaders of the world's largest economies removed a pledge to keep global trade free and open, acquiescing to an increasingly protectionist United States after a two-day meeting failed to yield a compromise.

By afternoon trading, the dollar index, which measures the greenback against a basket of six major rivals, slipped 0.1 percent to 100.26, after earlier falling to a five-week low.

The Dollar index fell almost 1 percent overall last week and more than 1 percent since the Fed raised rates on Wednesday.

USD/JPY fell to a two-week low by 112.56 and EUR/USD trades close to 1.0750. The single currency gave up some of its gains against the buck as a poll showed Marine Le Pen's lead over Macron has increased.

Gold meanwhile stayed supported and traded above $1'230 per ounce at the start of the week, driven by the latest Fed stance, and heightened uncertainty.

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