US Dollar Gives Up Gains after Trump’s Comment on Too Strong Dollar
By Daisy Joseph
The election of Donald Trump as the President of the USA helped the US dollar to rally in the forex market. However, the upward growth was brought to an abrupt end as soon as Trump took his office. The investors now understood that tax deregulations, tax reforms, and infrastructure spending couldn’t be implemented easily. Recent comments from Trump regarding the strength of the US dollar have changed its course in the forex market.
During an interview with the Wall Street Journal, Trump commented that dollar is getting too strong and this could affect the USA economy. As a result, sell off began because a President against the strengthening of the dollar is not good for the economy. Trump said that he is worried that the manufacturers could get hurt if USD continues to strengthen while the other countries devalue their currencies. USD gave up all its gains so far against the major international currencies.
Trump went on to add that the USA is not interested in labeling China as a currency manipulator. This was completely against his pledges during the election campaign. After meeting with the Chinese president, Trump has completely changed his views on Chinese currency manipulation policies. He is keen on working with China to reduce the power of North Korea. Commenting further on Janet Yellen’s performance as Federal Reserve Chair, Trump said that he likes her and wants to keep the option of reappointing her open.
The US dollar lost 7% immediately after the interview given by Trump.
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