U.S. Dollar Fell to More Than Two-Month Low
January 23 2017 - 6:09PM
Dow Jones News
By Ira Iosebashvili
The dollar fell to a more than two-month low against a basket of
currencies Monday, as the most recent comments by U.S. President
Donald Trump revealed few details about plans for lowering taxes
and stimulating the economy.
The Wall Street Journal Dollar Index, which gauges the U.S.
currency against a basket of 16 others, was recently down 0.9% at
90.77, the lowest closing level since Nov. 16.
Mr. Trump said Monday that the U.S. will impose a "very major"
border tax on companies that move overseas, while promising lower
taxes for the middle class and business. The comments did little to
shed light on how Mr. Trump intends to push through pledges for tax
cuts and infrastructure spending that helped lift the dollar to a
14-year high in the wake of his election.
"The market is growing impatient," said Omer Esiner, chief
market analyst at Commonwealth Foreign Exchange. "We are really
hungry for hard evidence and facts with respect to what policy is
going to look like."
Dollar bulls are also worried that Mr. Trump will push other
nations to keep their currencies from depreciating against the
dollar as he fights for better trade terms for the U.S., said John
Hardy, head of FX strategy at Saxo Bank.
The dollar tumbled last week after Mr. Trump broke with decades
of tradition and suggested he preferred a weaker U.S. currency. A
weaker dollar helps make U.S. exports more competitive
overseas.
The dollar was down 1.6% against the yen, to Yen112.70. The euro
was up 0.6% at $1.0767, its highest level since Nov. 11. The dollar
fell 0.9% against the Mexican peso, to 21.39.
Write to Ira Iosebashvili at ira.iosebashvili@wsj.com
(END) Dow Jones Newswires
January 23, 2017 17:54 ET (22:54 GMT)
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