US dollar skids after Trump says currency ‘getting too strong’

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The US dollar came under pressure on Wednesday after Donald Trump said the greenback was “getting too strong“.

The president’s comments to the Wall Street Journal immediately put the currency under pressure. The buck was down by 0.37 per cent against the yen to Y109.20 at pixel time, having traded flat ahead of the story.

The euro jumped 0.4 per cent to $1.0647, while the UK pound gained 0.3 per cent to $1.2528.

Emerging market currencies were also bid-up follow the comments from Mr Trump. In addition to saying that the dollar was becoming too strong, he also said “I do like a low-interest rate policy”. Lower US rates are seen as bullish for EMs since investors often chase higher yields.

In late afternoon trading, the JPMorgan EM currencies index was up 0.65 per cent, and on track for its best day in almost a month.

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