The US dollar has dropped to a five month low against Japan’s yen. Naturally, Donald Trump is responsible for the slipping value, as he asserted that the dollar was becoming too strong.
In an interview with the Wall Street Journal on Wednesday, Trump (of course) took partial credit for the strength of US currency, observing that “people have confidence in [him].” However, he went on to say that a strong dollar is not necessarily a good thing.
Trump explains that “there’s some very good things about a strong dollar, but usually speaking the best thing about it is that it sounds good,” adding that it’s “very, very hard to compete when you have a strong dollar and other countries are devaluing their currency.”
In response, currency investors began selling the greenback, causing its value to slip to a five month low against Japan’s currency, as well as the pound and the Swiss franc. The US dollar is usually benchmarked against the Japanese yen because Japan’s currency is typically considered safe and reliable during unstable geopolitical and market situations. Also, the yield after the 10-year US Treasury note dipped to its lowest level in about five months. Despite the fluctuation, the dollar had stabilized against the yen on Thursday morning.
Trump also commented about Janet Yellen, chair of the Federal Reserve, during his interview. Historically, Trump has been critical of Yellen. However, when asked about her, he said “I like her, I respect her.” So, there is a possibility of Yellen being renominated for her position.