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Mnuchin’s Silence on Dollar Policy Signals Rubin Mantra Lives On

  • Officials have touted value of robust currency since 1995
  • Trump manufacturing focus complicates administration’s stance

President-elect Donald Trump has made clear his administration will shake up long-held policies and traditions. Yet investors in the currency market see no sign that his Treasury Department will abandon the U.S.’s two-decade-old mantra touting the benefits of a strong dollar.

Steven Mnuchin, Trump’s pick for Treasury, has avoided specifying whether he’ll maintain his predecessors’ stance regarding the greenback. That’s been enough for investors and strategists to expect the status quo to hold, potentially removing one headwind to a dollar rally that’s been re-energized by Trump’s promises of fiscal stimulus.