Dollar soared after Nov. 8 as Trump inspired reflation trades
Greenback has fluctuated since January ‘too strong’ comments
Donald Trump continues to be perhaps the biggest single influence over the dollar, more than three months after his shock election victory.
While policy pledges drove the greenback’s 3.9 percent gain in November, its best rally in more than two years, pronouncements on the currency, and its peers, from him and his administration have whiplashed traders over the past six weeks.
Treasury Secretary Steven Mnuchin has also helped muddy the waters at times, either on his own or in combination with his boss. Mnuchin injected an element of calm Thursday, signaling the administration won’t rush to label China a currency manipulator. Trump’s own take a few hours later -- reading from his campaign-trail rhetorical playbook -- was less nuanced.
“It’s unusual in the U.S. for the president to talk as much about the currency as this president has chosen to, usually they leave that to the Treasury Secretary,” said Sean Keane, an Auckland-based analyst at Triple T Consulting and the former head of Asia-Pacific rates trading at Credit Suisse Group AG. “There’s also an unusual level of confusion generated because Trump seems to feel free to say whatever he wants, while leaving the actual policy execution to his appointees. The outcome is that the president can take the credit for a good outcome, whilst others take the blame if things go wrong.”
Certainly the president and the U.S. currency are more in the news now than they were under Trump’s predecessor.
The following is a compilation of remarks from President Donald Trump and his officials regarding currencies:
Trump Calls China ‘Grand Champion’ at Currency Manipulation
CONTEXT: Interview with Reuters, click here for story
Earlier same day said need to do something about China trade deficit
Mnuchin Sees No Urgency to Brand China Currency Manipulator