US Dollar Slumps After Trump Comments

The US dollar suffered further losses against other major currencies on Thursday, after President Trump said the dollar is getting too strong.
The dollar index, which measures the US currency against a basket of six other major currencies, fell to 100.01 in Asian trade early Thursday.

Lowest level since November

The US dollar dropped to its lowest level since November against the Japanese yen, which is a favorite in uncertain times due to Japan’s position as the world’s largest creditor nation, fetching as little as 108.70 yen in early Asia trade.

“I think our dollar is getting too strong, and partially that’s my fault because people have confidence in me. But that’s hurting – that will hurt ultimately. Look, there’s some very good things about a strong dollar, but usually speaking the best thing about it is that it sounds good. It’s very, very hard to compete when you have a strong dollar and other countries are devaluing their currency,” said President Trump.

The euro rose to 1.0658 against the dollar, its highest since April 7.

“The dollar’s been on the defensive all year, and these comments are not going to encourage the market to build (bullish) positions,” said Vassili Serebriakov, a currency strategist at Crédit Agricole.

European stocks close lower

European stocks fell Thursday after Trump’s remarks about the dollar. The Stoxx Europe 600 index fell 0.4% to close at 380.58, retreating after ending Wednesday’s session at its highest since December 2015.
London’s FTSE-100 slid 0.6 percent to 7,307 and France’s CAC-40 fell 0.6 percent to 5,072. German’s DAX dropped 0.4 percent to 12,108.
Most European markets will be closed on Friday for the Easter holidays.

Leave a Reply

Your email address will not be published. Required fields are marked *