Trump's comments send Dollar tumbling
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April 13, 2017

The US Dollar has plunged to a five-month low after US President Donald Trump warned that the currency was becoming "too strong".

The dollar also slipped against the pound and the Swiss franc and the yield on the benchmark 10-year US Treasury note fell to 2.22 percent, its lowest level in nearly five months.

Trump told the Wall Street Journal yesterday that the rise in the Dollar was partially his fault because "because people have confidence in me".

The president said while a strong Dollar "sounds good" it also has downsides.

"It's very, very hard to compete when you have a strong dollar and other countries are devaluing their currency," he said.

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During his presidential campaign Trump repeatedly levelled the accusation at China, calling the nation a currency manipulator and vowing to label them as such on his first day in office.

But he yesterday backflipped on the long-held position, saying that China not been a "currency manipulators" for some time and had actually taken measures to strengthen the Yuan.

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Trump also said in the interview that he may reappoint Janet Yellen to chair the Federal Reserve Board when her term ends next year, even though he thinks she should keep interest rates low.

"I do like a low-interest-rate policy," he said.

Trump claimed that Yellen had acted politically by leaving rates at near zero to make former president Barack Obama look good.

Wall Street Journal

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