USD Dumps After Treasury Sec Nominee Mnuchin Warns Of "Excessively Strong" Dollar

In Treasury Secretary nominee Steven Mnuchin's written responses to Senate questions, he made it clear that the "strong dollar" policy may not always be his priority as he noted "an excessively strong dollar may be negative in the short-term."

“The strength of the dollar has historically been tied to the strength of the U.S. economy and the faith that investors have in doing business in America,” Mnuchin said in written responses to questions from U.S. senators obtained by Bloomberg News.

 

“From time to time, an excessively strong dollar may have negative short-term implications on the economy.”

Additional headlines include:

  • *MNUCHIN REPLIES TO SENATE IN DOCUMENT OBTAINED BY BLOOMBERG
  • *MNUCHIN: TREASURY HAS RANGE OF TOOLS TO ADDRESS UNFAIR TRADE
  • *MNUCHIN: WILL ENSURE WEALTHY TAXPAYERS CAN'T GAME TAX SYSTEM
  • *MNUCHIN: WILL ADDRESS ISSUE OF CURRENCY MANIPULATION
  • *MNUCHIN: `EXCESSIVELY STRONG' USD MAY BE NEGATIVE IN SHORT TERM
  • *MNUCHIN: U.S. IMF FUNDS MUST BE USED IN LINE WITH POLICY GOALS
  • *MNUCHIN: WOULD ENFORCE EXISTING SANCTIONS AGAINST IRAN, RUSSIA
  • *MNUCHIN: WOULD CONSIDER ALL OPTIONS FOR INFRASTRUCTURE SPENDING

The reaction is clear in USDJPY...

 

The Dollar Index has dropped below 100 for the first time The ECB's December meeting...

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