US Treasury Secretary Steven Mnuchin says that a weaker dollar is ¨good for the US”. This is very different from the “strong dollar policy” that his predecessors from both parties traditionally had over many decades.
The US dollar is falling against all currencies, extending the losses across the board.
Mnuchin is speaking in Davos, Switzerland. He was also encouraged by the market acceptance of the tax reform and dismissed worries about China’s buying of US Treasuries.
- EUR/USD jumped to 1.2344. It was already higher on the day, challenging last week’s 1.2323 high but retreating amid mixed German PMIs and ahead of the ECB.
- USD/JPY, which had already fallen under 110, extended the drop and reached a new low of 109.64.
- GBP/USD, which struggled to conquer 1.40, eventually made it and settled under 1.4050. Mnuchin sent it to 1.4091.
- USD/CAD, which hesitated because of NAFTA, is now under 1.24. Support is at 1.2335.
- AUD/USD, which had its own hesitation around 0.80 is trading at 0.8040.