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The dollar fell to a record high on Friday when US President Donald Trump expressed concern over the rise in the currency, although the Chinese yuan cut risk appetite [19659002]. The US currency has gained more than 5 percent over the last three months as the central bank's expectations will continue to raise interest rates in the coming months.
But Trump said in an interview with CNBC on Thursday, The strength of the dollar makes the United States vulnerable, pointing out that the Chinese yuan "rocks like a rock".
Against a basket of currencies, the dollar stood at 95.19, slightly below the 95.62 level of the previous session. However, the risk appetite remained low after China allowed its currency to decline.
The Australian dollar changed little at $ 0.7364 after reversing losses earlier when it fell 0.5%.
Trump criticized yesterday the monetary policy of the Federal Reserve, in a rare position where the White House targets the Central Bank, which constantly asserts its independence.
Trump's remarks led to a decline in the dollar and a decline in Asian financial markets. "I'm not happy with the monetary policy that is gradually increasing interest rates, but at the same time lets them do what they think is the best," Trump said in an interview to the day. Who named him as Janet Yellen's successor, Trump said that he "l is not satisfied with his monetary policy, because we are growing, they want to raise rates again I am not happy about this. "
The US President also condemned the rising dollar because of the prospects of rising interest rates and trade disputes. "Look at the euro, it's coming down!" The Chinese currency is falling fast, putting us in a position that does not serve our interests. "
With these remarks, Trump again violates the dominant norms that the US president respects the independence of the decisions of the Federal Reserve.
The Federal Reserve, which began two years ago, Omar Essiner, a member of the Commonwealth Foreign Exchange, stated that Trump's remarks "are important because they violate a respected tradition in strict form. former presidents, the independence of the Central Bank of the United States. "
He added that" The strength of the dollar against the euro and the Chinese currency is a major obstacle to the US economy, "he said, noting that the President and Treasury Secretary, Stephen Menuchin, had been rented in the past for a weak dollar.That the administration considers the dollar as a weapon in its arsenal in the trade war could affect the shape of a clear (on the dollar) in the future. "
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