Forex- Trump’s Fed Comments Continue to Weigh on Dollar
21 August 2018, 16: 51
The U.S. fell against other currencies on Tuesday, as comments from U.S. President Donald Trump on the Fed increasing interest rates weighed on the greenback.
The , which measures the greenback’s strength against a basket of six major currencies, decreased 0.20% to 95.49 as of 11:20 AM ET (15:20 GMT).
Trump said in an interview with Reuters on Monday that he was "not thrilled" with Fed Chairman Jerome Powell for raising rates and added that the Fed should do more to help him to boost the economy.
Trump nominated Powell to succeed former Fed Chair Janet Yellen earlier this year. The comments come ahead of Wednesday’s minutes of the Fed’s August meeting, with investors on the lookout for any tweaks to the Fed’s outlook on inflation, the economy and trade war fears.
The dollar was higher against the safe-haven yen, with increasing 0.35% to 110.44. In times of uncertainty, investors tend to invest in the Japanese yen, which is considered a safe asset during periods of risk aversion.
The euro was higher, with rising 0.31% to 1.1517. Sterling also gained ground with up 0.45% to 1.2851.
fell 0.41% to 6.0335 in thin trading, as Turkish financial markets are closed for holidays for the week. The lira was under renewed pressure after Trump said there will be "no concessions" in a disagreement with Turkey over a detained U.S. pastor.
Meanwhile the Australian dollar was up, with rising 0.08% to 0.7344 while was up 0.66% to 0.6671. The loonie was slightly lower against the greenback, with inching forward 0.05% to 1.3052.