The dollar has sunk to its lowest level in more than six months, as global markets reacted to an election in the United States and the election of President Donald Trump.

The dollar rose to $1,230.25 US, or 1.23 percent, after a 0.6 percent rise at the end of last month.

The euro, the other major global reserve currency, rose to around $1 by 10:45am local time (19:45 GMT).

The U.S. stock market was down 0.4 percent at its lowest since mid-May.

The Dow Jones Industrial Average shed 24.04 points, or 0.5 percent, to 19,847.60.

The S&P 500 gained 12.34 points, with the Nasdaq composite index up 14.04.

A strong U.K. vote to leave the European Union and a rise in the cost of oil have also weighed on the value of the dollar, which rose to a record-high of 98.15 US cents in early trading.

The central bank in London was forced to keep interest rates near zero on Wednesday to keep the global economy from overheating.

The move was a rare sign of a government backing down on its austerity measures.

The pound has lost more than a third of its value against the dollar in a month, after hitting a record high in August.

The lira rose to 68.16 cents US by 12:15pm local time, with an implied daily gain of 2.54 percent.

“The euro is now trading as if the ECB is going to reverse its policies on the euro and allow it to recover,” said Alex Renton, chief economist at Investec in London.

“It is going in a direction where it is going towards parity with the dollar.”

He said the currency would need a major boost in oil prices to make up for the weakening of the euro.

The European Central Bank said on Wednesday it would cut its benchmark lending rate to 1.75 percent in March to try to prevent a surge in inflation.

“A substantial increase in inflation is needed to prevent the euro from slipping back to levels seen in late 2008,” ECB President Mario Draghi said.

“At this time, it is unlikely that the ECB will increase its support to the euro in the medium term.”