Weak dollar is good news, Steve Mnuchin insists

I want to see a strong dollar' Trump tells CNBC

Apart from the possibility of other countries trying to competitively devalue their currencies in response, Orlando said, the danger in talking down the dollar is that it can hurt confidence among investors, which could produce volatility in currency markets and in turn spill into stock markets.

While the world's largest economy is indeed going strong, the dollar's 10 per cent decline since President Donald Trump took office belies her assertion that the currency is very stable.

The stronger pound could boost the United Kingdom economy by helping to bring down inflation, which has raced ahead of wage growth since the Brexit referendum in 2016.

Addressing the World Economic Forum in Davos, Switzerland, Steven Mnuchin said that a weaker dollar "is good for us as it relates to trade and opportunities".

The U.S. treasury chief has welcomed a weaker value in the dollar, breaking with a past commitment by the U.S. government to back a strong dollar.

For many market analysts, Mnuchin's comments represent a stark break from previous U.S. administrations and could provoke pushback from other regions before too long.

More news: Chinese scientists successfully clone monkeys

"Several members of the Council expressed concern, and this concern was also in a sense was broader than simply the exchange rate, it was about the overall status of global relations right now", he said.

"It just means that President Trump is looking out for American workers and American interests no different than he expects other leaders would look out for their own". The British pound climbed to a post-Brexit vote high shortly after 8:30 a.m. London time. "He basically says what he wants to say and that's what he thinks", Joel Naroff of Naroff Economic Advisors told AFP. But the weak greenback is also a major driver, helped by Mr Mnuchin's comments.

But Joseph Gagnon, a senior fellow at the Peterson Institute for International Economics in Washington, told AFP he was pleased to see Mnuchin favoring a weaker dollar.

Mnuchin said the USA administration "couldn't be happier" with the response to tax changes that cut the rate corporations pay.

Mr Hammond said inflation was peaking and sterling appreciating as the economy recovered from the initial shock of the Brexit vote in 2016.

It's day two at the World Economic Forum and there'll be no escaping Europe. "But privately they are perfectly happy when the dollar is falling at a slow rate because it makes American companies a little bit more competitive". In mid-2015, a dollar was worth 125 Japanese yen; that fell to less than 109 yen. It was recently off 0.6% at 89.632. It also places the European Central Bank's departure from years of ultra-loose monetary policy in jeopardy.

Related News:



Most liked

Justice Dept ramps up pressure on so-called sanctuary cities
The Edward Byrne Memorial Justice Assistance Grant Program, or JAG, originated with the Consolidated Appropriations Act of 2005. A detainer is a request from ICE for the jail to hold an illegal alien for up to an extra 48 hours to transfer custody.

Smith, lead singer of The Fall, dies at 60
Tributes to Smith online referred to him as a "true music maverick", a "genius" and "incomparable". His death was previously wrongly announced by the BBC in March a year ago , on his 60th birthday.

Trump stays out of sight as shutdown deal is reached
Budget director Mick Mulvaney says he's meeting with Trump later Monday to go over the "mechanics" of a shutdown. The White House has already poured cold water on a bipartisan bill from GOP Sen.

Bangladesh delays repatriating Rohingya refugees hours before set to begin
The United Nations described Myanmar's crackdown as ethnic cleansing of the Rohingya, which Myanmar denies. Only refugees with identity documents, which most Rohingya lack, will be allowed back into Burma.

Jimmy Kimmel Gets Therapy From an Unexpected Person in Oscars 2018 Promo
It is then revealed that he is talking to Warren Beatty , who, along with Faye Dunaway , read the wrong name of the best picture victor .

Arsenal, United complete swap deal for Sanchez, Mkhitaryan
And I told him that my dream was to come here to Manchester United . "We did what we tried to do and went as far as we could (with money)".

Pompeo Says CIA Previously Had 'Insufficient Focus' on North Korea
He wouldn't address the question of whether there are military options available to the United States that don't risk an escalation into nuclear war with North Korea.

Halep, Kerber handle big hitters in Aussie quarters
Keys won just 43 percent of her first serves, and that was as much a tribute to the return of Kerber as any failure on Keys' part. But Sharapova, despite the lopsided score, looked fully engaged in the combat from start to finish.

Government shutdown won't close National Parks
All government-run operations and facilities are closed and entrance stations are not staffed. At Olympic National Park , visitor services and the road to Hurricane Ridge will be closed.

Arrested After Shooting at Ellis County School: Deputies
A 16-year-old boy was taken into custody Monday morning after the report of a school shooting in Italy, which is south of Dallas. ECSO posted to Facebook an update saying students, under police guard, were being moved as the investigation continues.

Apple may discontinue iPhone X within a year of launch, says analyst
The tech giant tends to retain the previous years' flagship models as an affordable alternative to the latest iPhones . Apparently, Chinese customers are disappointed by the amount of usable space on the phone's display.

Budget Bickering Shuts Down Parts of US Government
Most of the No votes came from the most liberal Democratic senators and a few senators who are weighing a 2020 presidential bid. Republicans promised a vote to protect DREAMers from deportation would happen this month if a deal was reached.

National Football League deems Raiders complied with Rooney Rule, won't be disciplined
It is believed Davis, if determined to have violated the Rooney Rule, would have faced at least a $500,000 fine as discipline. The Raiders have a longstanding reputation as a champion of opportunity for underrepresented people in the NFL.

Rafael Nadal BEATS Diego Schwartzman in gruelling Australian Open clash
Nadal lost last year's Australian Open final to Roger Federer, but went on to regain the No. 1 ranking and win the French and U.S. Schwartzman dug deep to save two match points on his serve, conjuring some brilliant winners in the process.

Higbie Resigns from Trump Administration after Bigoted Comments Surface
Trump has denied he is a racist, telling a reporter on Sunday: "I'm the least racist person you have ever interviewed ". Higbie , a staunch Trump supporter, made the comments as host of the internet radio program " Sound of Freedom ".