Author: China National News
Posted: Thursday, April 13th, 2017
U.S. President Donald Trump’s comments that the U.S. currency was “getting too strong” made the dollar volatile on Thursday, as global stock markets turned lower.
Commenting on the dollar’s exchange rate against a basket of currencies, Trump said, “I think our dollar is getting too strong, and partially that’s my fault because people have confidence in me.”
He added, “It’s very, very hard to compete when you have a strong dollar and other countries are devaluing their currency.”
His comments helped push the yen to its highest level since mid-November, just after the presidential election.
Trump even withdrew from a key campaign promise that he had earlier made, repeatedly, to declare China a currency manipulator.
In an indication that the trade tensions had been eased, Trump hailed the rapport he developed with his Chinese counterpart, Xi Jinping.
Further, the markets and investors were weighed by tensions over North Korea too, just ahead of a long weekend.
In Europe, London’s FTSE-100 lost 0.6 percent to 7,307 and France’s CAC-40 dropped 0.6 percent to 5,072.
German’s DAX slid 0.4 percent to 12,108.
Meanwhile, the future for the Dow Jones industrial average was down 0.2 percent and the Standard & Poor’s 500 was off 0.3 percent.
However, following the slump due to Trump’s comments, the dollar steadied at 109.10 yen, compared to Wednesday’s 108.80 yen.
The euro edged down to $1.0634 from $1.0665.
Tokyo’s Nikkei 225 fell 0.7 percent to 18,426.84.
Sydney’s S&P-ASX 200 lost 0.7 percent to 5,889.90.
The Shanghai Composite Index gained 0.1 percent to 3,275.96.
Hong Kong’s Hang Seng retreated 0.2 percent to 24,261.66.
Seoul’s Kospi added 0.9 percent to 2,148.61.
India’s Sensex declined 0.7 percent to 29,513.14.
Prices of gold, silver and other metals leapt Thursday, as U.S. dollar dropped lower.
Margaret Yang of CMC Markets said in a commentary, “After a few weeks of relative calm, the ‘Trump hurricane’ is back to disrupt the tranquility in the currency markets. I describe Trump’s influence on currencies as a hurricane as it’s both harmful and unpredictable. It is debatable whether Trump can have both a weak currency and massive fiscal stimulus at the same time.”
Meanwhile, benchmark U.S. crude rose 4 cents to $53.15 per barrel in electronic trading on the New York Mercantile Exchange.
On Thursday, the dollar regained its footing, after tanking overnight.
European stock markets churned lower with trade subdued before the long Easter holiday weekend.