Dollar fell after Trump's criticism of monetary policy
The dollar fell second day after the U.S. president criticised the FED's and global monetary policy on the weekends.
On Friday, the US president alleged that the European and Chinese communities had intervened in the exchange rates.
He commented: "China, EU and other countries have intervened in rates and interest rates down to low". He thinks that, along with the American lifting of interest, has made the US economy weaker when the dollar is strong.
In another comment, he said: "Tightening will now affect all that we have done". This comment came after the president told the CNBC Radio that he was "not happy" about raising the interest rate of the FED.
His comment resulted in the dollar discount, previously, the dollar has increased to the highest level 1 year on Wednesday when the FED Chairman commented on the interest policy.
At the G20 meeting on the weekends, Secretary of Finance Steven Mnuchin clarified his comment that he did not intend to intervene in the FED's decision. "We fully advocate the independence of the FED. The FED decides to raise interest rates, depending entirely on them and also depends on how the economy would be like. "
Although attempting to alleviate stress, the dollar is still declining.
USD Index, the dollar tracking index against the currency basket, at 94.06 at 1:05AM ET (0505GMT), which is 0.2% lower than the previous session.
Meanwhile, the USD/CNY rate fell 0.08% to 6.7650 USD, while the Euro increased against the dollar to 1.1740. Trump had previously criticized the EU and China intervened in the rates and kept the interest rate low. He commented: "America raises interest rates while the dollar is stronger and continues stronger every day, taking away our great competitive advantage"
USD/JPY Discount is 0.48% 110.9 USD according to events on weekends. The stock market of Japan is under pressure from the strong yen. The Nikkei 225 is reduced by more than 1% on Mondays.
On Friday, the US president alleged that the European and Chinese communities had intervened in the exchange rates.
He commented: "China, EU and other countries have intervened in rates and interest rates down to low". He thinks that, along with the American lifting of interest, has made the US economy weaker when the dollar is strong.
In another comment, he said: "Tightening will now affect all that we have done". This comment came after the president told the CNBC Radio that he was "not happy" about raising the interest rate of the FED.
His comment resulted in the dollar discount, previously, the dollar has increased to the highest level 1 year on Wednesday when the FED Chairman commented on the interest policy.
At the G20 meeting on the weekends, Secretary of Finance Steven Mnuchin clarified his comment that he did not intend to intervene in the FED's decision. "We fully advocate the independence of the FED. The FED decides to raise interest rates, depending entirely on them and also depends on how the economy would be like. "
Although attempting to alleviate stress, the dollar is still declining.
USD Index, the dollar tracking index against the currency basket, at 94.06 at 1:05AM ET (0505GMT), which is 0.2% lower than the previous session.
Meanwhile, the USD/CNY rate fell 0.08% to 6.7650 USD, while the Euro increased against the dollar to 1.1740. Trump had previously criticized the EU and China intervened in the rates and kept the interest rate low. He commented: "America raises interest rates while the dollar is stronger and continues stronger every day, taking away our great competitive advantage"
USD/JPY Discount is 0.48% 110.9 USD according to events on weekends. The stock market of Japan is under pressure from the strong yen. The Nikkei 225 is reduced by more than 1% on Mondays.
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