Earlier, the US Dollar was on the backfoot versus the Japanese Yen as well as the common currency Euro. That came about as a result of Thursday’s comments from US President Trump. It surprised markets when he specifically commented on the Dollar’s strength and a potential interest rate hike by the Federal Reserve Bank. In the CNBC interview, Trump pointed out the disadvantages the United States would suffer from a too strong currency and pointed to the falling Chinese Yuan
As reported at 10:28 am (JST) in Tokyo, the USD/JPY was trading at 112.583 Yen, up 0.15%; the pair earlier hit a trough of 112.351 Yen, while the peak for the session is at 112.623 Yen. The EUR/USD is trading at $1.1641, down 0.04%; the pair has ranged from a low of $1.16357 to a peak of $1.16598.
White House Provides Clarity
While initially Trump had said he was displeased with the tighter monetary policy endorsed by the Fed, his administration later attempted to provide some clarity. According to the White House statement, the President fully respects the independence of the Fed’s Federal Open Market Committee and its decision making process. That may have been enough to appease markets which reversed course, at least against the Yen, and pushed the Dollar higher.
This article provided by NewsEdge.