Mnuchin embraces a weak dollar because “it’s good for the US”

Mnuchin embraces a weak dollar Because “it’s good for the US”

US Treasury Secretary says the country remains open to business and trade agreements with the rest of the world.

The US delegation at the World Economic Forum lowers the tension before the arrival of Trump. It is expected that US President emphasize his speech on “America First” (America First) during his speech at Davos.

The US Treasury Secretary, Steven Mnuchin, has done it again and this time from the World Economic Forum held in the Swiss city of Davos. He has thrown fuel on the fire of verbal currency war making it clear that a weak dollar is more than welcome because it benefits the country’s economy.

At the same time, leading the US delegation it has landed in the economic forum, has prepared the ground for the arrival and the speech of the US president, Donald Trump. Republican morning and begin their stay is expected on Friday when he addresses the world from Davos, make a new plea for protectionism. Operators shelve the dollar, which has depreciated to a minimum of three years in the index that measures their performance against six rivals, below 90.00 points, at the prospect that in his speech emphasizing its policies “America First” (America First).

Under this agenda, Trump has threatened to withdraw from the FTA of North America, has denied the agreement on global climate change and criticized global institutions, including the United Nations and NATO.

WEAK DOLLAR FOREIGN TRADE FAVORS

Before listening to Trump, world leaders gathered in Davos loaded against protectionism magnate, especially Italian Prime Minister, Paolo Gentiloni, who said that “respects the ideas of Trump, but that does not agree with their positions on immigration, climate change and foreign trade “.

Mnuchin, meanwhile, has the mission of acting as ‘good cop’ and has made it clear that the US is “fully” committed to free and fair trade, as recorded by the Associated Press. But are your comments on the dollar which caused a stir. The dollar index, in particular, has depreciated by 0.47% after his words about the currency.

“Obviously, a weaker dollar is good for us with regard to trade and presents many opportunities,” said Mnuchin reporters in Davos, according to ‘Bloomberg’, and added that the short-term value of the coin ” it is not at all a concern. “

“In the longer term, the dollar’s strength is a reflection of the strength of the US economy and the fact that it is and will remain the main currency in terms of reserve currency,” added the US Treasury Secretary.

The dollar plummets 1.6% against the yen from highs on Tuesday and is on track to reach 109 yen, new four-month lows. The pound has risen above $ 1.41 and is heading to $ 1.4175, on the way to $ 1.4330. The euro, meanwhile, exceeds $ 1.2350.

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