Dollar hits a year-low, global stocks rally set to end over strong euro

The US dollar sank to its lowest in more than a year against key world currencies on Friday as investors assessed comments from the European Central Bank (ECB) and obstacles to US President Donald Trump's domestic agenda, while world stock markets were poised to snap a 10-session streak of gains.

Gains in the yen, gold and US Treasuries pointed to moves into safe-haven assets compared with stocks that are considered riskier. Oil prices sank more than 1 per cent.

The euro built on sharp gains from a day earlier, rising to near two-year highs against the dollar and undermining European stocks, with Germany's DAX equity index down 1.7 per cent.

ECB President Mario Draghi said on Thursday financing conditions remained broadly supportive, and that the euro's appreciation had "received some attention." However, he did not cite that as a problem nor did he directly try to talk the currency down.

"The fact that Draghi didn't necessarily argue too much against the strength of the euro... certainly gave the greenlight for individuals to want to own the currency again or actually add to their positions," said Dean Popplewell, chief currency strategist at Oanda in Toronto.

MSCI's gauge of stocks across the globe shed 0.32 per cent, falling after 10 days of gains.

US stock indexes opened lower, pulling back from record high levels reached earlier in the week.
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