Trump’s criticism of the Fed unsettles equities

The dollar index, which tracks performance against a basket of six major currencies, fell 0.35% on Tuesday.

It has now fallen 1.2% in the past four days, its worst such run since late March.

The pan-European Stoxx 600 index rose 0.2% in early trade on Tuesday, with export-led UK stocks underperforming.

The FTSE 100, which derives a large portion of its revenues in the US and so benefits from dollar strength, was flat.

Emerging relief

The dollar’s weakness took the pressure off many emerging-market currencies, that have struggled in recent weeks as worries over Turkey precipitated a sell-off across the globe.

The Chinese yuan rose by 0.25% to 6.839 to the dollar.

The currency was on track for its fourth session of gains, pulling further away from 6.934, its weakest since January 2017 marked last week.

The yuan had weakened to a 19-month low against the dollar earlier this month amid concerns over the country’s economic growth, China-US trade war worries and a broad rally by the dollar.