Investing.com - The dollar fell to fresh seven-week lows against a currency basket on Wednesday after President Donald Trump said on Twitter that he would seek a "major investigation" into alleged voter fraud.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, touched lows of 99.81, the weakest level since December 8 and was last at 100.00, off 0.27% for the day.
Trump said he would seek a "major investigation" into alleged voter fraud that will focus on two states and illegal voters.
The call came despite Republican election officials in key states saying they have found no evidence of fraudulent voting.
On Tuesday, the National Association of Secretaries of State said it had confidence in the "systemic integrity of our election process" and was not aware of any evidence related to Trump's claims.
The dollar has come under pressure since Trump’s inauguration last Friday amid concerns over a lack of clarity on his economic policies and fears that his protectionist trade stance could hit corporate profits and act as a drag on growth.
The dollar was lower against the safe haven yen, with USD/JPY down 0.37% to 113.35 after nearing the 114.00 level overnight.
In Japan, data on Wednesday showed that exports rose for the first time in 15 months in December, giving a boost to the export driven economy.
The euro edged higher, with EUR/USD inching up 0.1% to 1.0742, off the seven-week highs of 1.0773 set in the previous session.
The pound moved higher against the dollar and the euro as investors awaited the government’s bill to trigger Article 50 and begin the formal process of exiting the European Union.
GBP/USD climbed 0.53% to 1.2586, the highest level since December 14, while EUR/GBP was down 0.46% at 0.8530.
Meanwhile, the Australian dollar was weaker, with AUD/USD down 0.32% at 0.7557 after hitting overnight lows of 0.7515 as subdued domestic inflation data rekindled expectations for an interest rate cut.
The New Zealand dollar pushed higher, with NZD/USD rising 0.19% at 0.7262.