Dollar hits new lows on Trump comments on currency, interest rates

April 13, 2017 06:52
1 minute read.
Breaking news

Breaking news. (photo credit: JPOST STAFF)


Dear Reader,
As you can imagine, more people are reading The Jerusalem Post than ever before. Nevertheless, traditional business models are no longer sustainable and high-quality publications, like ours, are being forced to look for new ways to keep going. Unlike many other news organizations, we have not put up a paywall. We want to keep our journalism open and accessible and be able to keep providing you with news and analysis from the frontlines of Israel, the Middle East and the Jewish World.

As one of our loyal readers, we ask you to be our partner.

For $5 a month you will receive access to the following:

  • A user experience almost completely free of ads
  • Access to our Premium Section
  • Content from the award-winning Jerusalem Report and our monthly magazine to learn Hebrew - Ivrit
  • A brand new ePaper featuring the daily newspaper as it appears in print in Israel

Help us grow and continue telling Israel’s story to the world.

Thank you,

Ronit Hasin-Hochman, CEO, Jerusalem Post Group
Yaakov Katz, Editor-in-Chief


NEW YORK  - The dollar fell broadly on Wednesday after US President Donald Trump said the dollar was "getting too strong" and that he would prefer that the Federal Reserve keep interest rates low.

Trump also said, during an interview with the Wall Street Journal, that his administration would not label China a currency manipulator, reversing a campaign trail pledge to do so. He also left open the possibility of renominating Federal Reserve Chair Janet Yellen when her term expires next year.The dollar index, which tracks the US currency against six major rivals, fell to its lowest since March 30 after the news.

"The market had a big reaction, but I think it was an overreaction," said Kathy Lien, managing director at BK Asset Management in New York. "He may just be hedging his bets by making sure that the American public realizes he’s not backing down on trade."

Lien also said she expected Trump's comments could weigh on the dollar in the long term. It has fallen every day this week as worries over geopolitical tensions have prompted investors into safe havens like the yen, US Treasuries and gold.

"The dollar’s already under pressure, so I think any excuse for further pressure is likely to bring the greenback even lower," Lien said.

The dollar fell by more than 1 percent against the yen on Tuesday, its biggest one-day fall in three months against the Japanese currency. The greenback fell below 110 yen for the first time since mid-November. On Wednesday, it furthered those losses and was last down 0.5 percent at 109.1 yen, its lowest since Nov. 17.

Against the traditionally safe-haven Swiss franc, the dollar dropped to 1.0024 franc, its lowest in a week.

The euro rose 0.6 percent against the dollar to a 6-day high of $1.0671.

The dollar also sank against the offshore Chinese yuan after Trump's comments. The typically little-moved Chinese currency fell 0.15 percent to a five-day low of 6.8847.

Join Jerusalem Post Premium Plus now for just $5 and upgrade your experience with an ads-free website and exclusive content. Click here>>

Related Content

Breaking news
July 21, 2019
Female suicide bomber blows up hospital, killing 9 Pakistan


Cookie Settings