The U.S dollar, on Tuesday, January 17, dipped by 0.6 percent against a basket of currencies on U.S. President-elect Donald Trump comment that the strong greenback was hurting U.S. competitiveness.
The greenback thus dropped to a one-month low Tuesday after President-elect Donald Trump described the currency as “too strong” , casting new uncertainty onto the dollar’s post-election rally.
The dollar surged at the end of 2016 on expectations that stimulus promised by Trump on the campaign trail would boost U.S. economic growth and feed demand for the dollar.
In an interview with the Wall Street Journal Trump said that U.S. companies “can’t compete with (China) now because our currency is strong and it’s killing us.”
The dollar fell as low as 112.74 yen JPY= in early North American trading, with investors also citing Trump’s tweets criticizing a Republican plan on border tax adjustments which had been expected to support the dollar.
Analysts have suggested in recent weeks that the greenback may have hit its peak when it touched a 14-year high earlier this month. Since then, the dollar has consolidated in most currency pairs and against a basket of six major currencies .DXY that track its value, hitting its lowest since Dec. 8 on Tuesday.
