Mnuchin Says Trump Is "Absolutely Not" Trying To Talk Down The Dollar

Tyler Durden's picture

One week after Donald Trump, in an interview with the WSJ, sent the dollar tumbling in its biggest one day drop in months, Treasury Secretary Steven Mnuchin has been engaging in damage control with not one but two appearances in the FT, first stating that in the "long-run" a stronger dollar is beneficial for the US economy on Monday, and then again making headlines overnight when he said that Donald Trump is "absolutely not" trying to talk down the strength of the dollar, as stated again in the Financial Times on Wednesday.

As we noted at the time, Mnuchin first had played down Trump's WSJ comment that the dollar was getting "too strong" in an interview first published late on Monday in the FT. Then, in a more detailed version published on Wednesday, he directly rejected the idea that Trump was trying to talk down the dollar, saying "Absolutely not, absolutely not."

FT — You say you don’t intervene in foreign exchange markets, and yet some people in the markets took the president’s comments last week as him talking down . . .
SMAbsolutely not. Absolutely not. I disagree with that completely.
FT — OK. So that’s not part of the strategy? To talk down the dollar?
SM — No. The president was making a factual comment about the strength of the dollar in the short term. And by the way, when we talk about an intervention, and we even noted this in the report, there’s a big difference between talk and action

While the dollar gained after Mnuchin's initial remarks late on Monday, on Wednesday the euro hit a three-week high as the dollar was weakened by doubts over a fiscal boost promised by the president and by the pricing out of bets on three U.S. Federal Reserve interest rates hikes this year. Mnuchin also said the Trump administration did not deem foreign countries to be manipulating their currency if they did so in a way that benefited Washington.

"To manipulate a currency you have to be doing it to disadvantage the United States," he said.

 As a reminder, Trump's administration decided not to do so in a report published on April 13. The Treasury report recognized what many analysts have said over the past year, namely that China has recently intervened in foreign exchange markets to prop up the value of the yuan, not push it lower to make Chinese exports cheaper.

As Reuters adds, finance ministers and central bank chiefs meet in Washington this week for the International Monetary Fund's twice-yearly meetings. Mnuchin said addressing currency swings was "one of the IMF's most important roles".

While the EURUSD has fluctuated overnight, Mnuchin's repeat comment has had an impact on the USDJPY, which has levitated sharply in the overnight session, rising just shy of 109 and lifting both European stocks and US equity futures with it.

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Bank_sters's picture

Liars, all of them.

 

And not one major ceo, coo, cfo, etc has gone to jail for the financial collapse of 08' 09...   NOT ONE.

Looney's picture

 

Yeah-yeah, Mnuchin, keep talking out of both sides of your asshole, Asshole!

Looney   ;-)

Troy Ounce's picture

 

 

Why it so quiet with the smearing of each other after the 59, sorry 23, Tomahawks?

NoDebt's picture

Rumor is that the Fed was going to fire Trump if he didn't get back in line.

 

HardAssets's picture

This is why some people say 'America is a joke'

There is the illusion of elections & a representative government of consent, but its all a farce. And there are no 'markets', just manipulations.

'Vote' for one candidate based on their promises ? Doesn't matter - they will be bribed or blackmailed to do the Deep State's bidding anyway. The American system is completely corrupt and taken over by criminals.

halcyon's picture

"Dollar is too high. Dollar isnt too high. We are (not) trying to talk dollar up/down."

A page straigt outta Greenspan-Bernanke-Draghi playbook.

Talk is cheap Eunuchin. Start delivering. Actions speak louder than BS.

 

messystateofaffairs's picture

Munchy and Kushy look like they'd make a nice Jewish couple. Rumors are they wear pink panties.

thunderchief's picture

From the horses mouth. .

Of course the promoters and cheerleaders of the strong dollar, that  bash everything that is an alternative,  the treasury and fed, is out squawking strong dollar again.

Brought to you by the same folks that sold all of America's gold, including foriegn gold, won't allow an audit of anything, and has been destroying the dollar since 1913.

BullyBearish's picture

the jawboning is all about the churn...billions of billions to be made by pusing the market (fixed income and equities) this way and that, especially when you control the wind...

new game's picture

sometime i have to lie to tell the truth...

Thom Paine's picture

Trump's brain, dollar and mouth all from different planets.

michaelsterling's picture

Ah yes.  It's not manipulation if it works in your favor, politically.

Placerville's picture

Someome probably got their ass handed to them when gold didn't drop on the paper dump yesterday.

This is their mouthpiece.

Ricki13th's picture

I really don't like this Goldman Sachs asshole Mnuchin him and his other Goldman trash Gary Cohn are hijacking the nationalist agenda. It's same crap just a different face

mily's picture

Lets talk it down...oops..too much...lets talk it up a bit...perfect...

central planning at its best

buzzsaw99's picture

swamp thing,

you make my fart sting...

NSZ's picture

He is right. I don't see why the banking establishment would opt for a week dollar. In the nearest timeframe all they want is a strong dollar. Why the rate hikes? Why Trump left Yellen in office? They are the ones controlling the printing presses, so they are the ones that gonna benefit from the strong dollar first.

It is going to bring the stock market down, but it would go down anyway they reason. With a strong dollar they can acquire cost effectively all kinds of safe assets before the coming crisis.

NSZ's picture

He is right. I don't see why the banking establishment would opt for a weak dollar. In the nearest timeframe all they want is a strong dollar. Why the rate hikes? Why Trump left Yellen in office? They are the ones controlling the printing presses, so they are the ones that gonna benefit from the strong dollar first.

It is going to bring the stock market down, but it would go down anyway they reason. With a strong dollar they can acquire cost effectively all kinds of safe assets before the coming crisis.

NSZ's picture

He is right. I don't see why the banking establishment would opt for a weak dollar. In the nearest timeframe all they want is a strong dollar. Why the rate hikes? Why Trump left Yellen in office? They are the ones controlling the printing presses, so they are the ones that gonna benefit from the strong dollar first.

It is going to bring the stock market down, but it would go down anyway they reason. With a strong dollar they can acquire cost effectively all kinds of safe assets before the coming crisis.

BurningBetty's picture

You know those heart monitors people are attached to at hospitals? Before the heart flatlines it normally goes haywire..the fx markets remind me of that. They are all over the place and the moves are sudden and abrupt in all directions. I am quite curious about the 2018 and especially October 2017.

Last of the Middle Class's picture

The President of the United States says the dollar is too strong and it's not talking down the dollar? Gimme a break, The dollar being too strong is GS boiler plate response every time they need to push it down a bit and in case you haven't noticed, they're clearly in charge now at the WH. Reminds me of the guy walking the tight rope across the grand canyon. This Donald Trump is walking a fine line between promising one thing and doing another. Are we down to parsing words now? You mean like "wipe it with a cloth"? Is that where we're headed now that the liberal bankers have absconded with the White House once again? A weaker dollar and "measured inflation" are banker speak (usually through left wing-nut economists) for American workers can work a little harder for a little less and all will be fine for the sake of corporate profits. The Fed just devalued everything you own and you income for the next 50 years with 10 trillion in QE. We damn sure don't need a weaker dollar.

Wahooo's picture

You lost me at "Jew".

Fake Trump's picture

How many moles Soros has planted in the inner circle of Trump. Trump is no match for Soros. He is by far wealthier than Trump. He is more experience than Trump. He has a better network both within the US and outside the US. Just wait Soros will screw Trump up. Trump loves red and Soros loves purple.

 

moorewasthebestbond's picture

Mnuchin = King of the Swamp = Should be rotting in prison for his mortgage dealings.