Dollar in the Dumps

US Commerce Secretary Wilbur Ross defended those tariffs and warned Washington would be prepared to fight back in future against countries it felt had flouted the rules.

The dollar’s sell-off was also helped by investors betting on tighter monetary policies by major central banks, bringing them in line with the Federal Reserve.

The dollar took a hit from the developments and in Asia extended the losses, briefly falling below 109 yen for the first time since September 2015 before edging back up.

That hit Japan’s benchmark Nikkei 225, which ended the morning 0.9 per cent lower, having fallen 0.8 per cent on Wednesday from a 26-year high.

Stephen Innes, head of Asia-Pacific trading at Oanda, said: “While we already knew the administration previously favoured a weaker dollar, his comments caught the dollar prone and defenceless, opening floodgates to a massive wave of dollar-selling.”

The Business Times via AFP

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Stephen Innes

Stephen Innes

Head of Trading APAC at OANDA
Stephen has over 25 years of experience in the financial markets and currently based in Singapore as the Head of Trading Asia Pacific with OANDA. Stephen's market views focus on the movement of G-10 and ASEAN Currencies. His views appear in Bloomberg, CNBC.Reuters, New York Times WSJ and the Economist. His media appearances include Bloomberg TV & Radio, BBC International, Sky TV, Channel News Asia, ASTRO AWANI and BFM Malaysia. Stephen has an extensive trading experience in Spot and Forward FX, Currency and Interest Rate Futures, Money Market Derivatives and Precious Metals. Before joining OANDA, he worked with organisations like Nat West, Chemical Bank, Garvin Guy Butler, and Sumitomo Mitsui Banking Corporation. Stephen was born in Glasgow, Scotland, and holds a Degree in Economics from the University of Western Ontario.
Stephen Innes