Dollar Drops After Trump Rate Comments

By Anonymous

The dollar fell for a sixth straight session Tuesday, a day after President Donald Trump criticized the Federal Reserve for raising interest rates.

The WSJ Dollar Index, which measures the U.S. currency against a basket of 16 others, was recently down 0.3% at 89.26.

Mr. Trump said he is “not thrilled” with Fed Chairman Jerome Powell for raising interest rates and said the central banker should do more to help him lift the economy, Reuters reported Monday.

The comments pushed some dollar bulls to lock in gains on the U.S. currency, which is up around 4% against other currencies this year. Higher rates tend to boost the dollar by making it more appealing to yield-seeking investors.

The White House has expressed dissatisfaction with the Fed’s policy before. Mr. Trump last month complained that rising interest rates had buoyed the dollar and said he hoped the Fed would stop tightening. A stronger dollar makes U.S. exports less competitive abroad.

In emerging markets, the dollar was recently up 2% against the Brazilian real to 4.04, its highest level in two years. Brazil’s currency has suffered from uncertainty over a presidential election set for later this year.

At the same time, the dollar lost 0.9% against the South African rand. It was also off 0.2% against the Mexican peso.

Write to Ira Iosebashvili at [email protected]