Carlos
Barria/Reuters
President Donald Trump on Thursday said Treasury
Secretary Steve Mnuchin's
remarks on the dollar were "taken out of context."
On Wednesday, Mnuchin said a
weaker dollar was good for US trade.
Trump told
CNBC: "The dollar is going to get stronger and stronger,
and ultimately I want to see a strong dollar."
President Donald Trump said Thursday that earlier comments by
Treasury Secretary Steven Mnuchin on the dollar
were "taken out of context."
On Wednesday, Mnuchin told reporters at the World Economic
Forum in Davos that a
weaker dollar is good for the US "as it relates to trade and
opportunities." His comments triggered the dollar's worst
sell-off in 10 months.
"Our country is becoming so economically strong ... that
the dollar is going to get stronger and
stronger,
Trump told
CNBC. "And ultimately, I want to see a strong
dollar."
A weaker dollar cheapens American products for foreign
buyers, which makes US exports more attractive. But it could also
erode the US's purchasing power.
The dollar index, which tracks it against a basket of other major
currencies, spiked following Trump's comments and reversed its
earlier losses to as high as 89.23.
The index fell deeper into a three-year low Thursday after
Mnuchin's comments. Greg Valliere, the chief
strategist at Horizon Investments described the
comments as "the first
serious economic misstep by the Trump administration."
Mnuchin's comments spooked some investors because it's
unusual for an administration to actively favor a weaker dollar,
and some saw the White House
weaponizing the currency in its trade policy.
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