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Dollar tumbles even lower as Mnuchin endorses weak dollar

US  Treasury Secretary Steven Mnuchin says that a weaker dollar is ¨good for the US”. This is very different from the “strong dollar policy” that his predecessors from both parties traditionally had over many decades.

The US dollar is falling against all currencies, extending the losses across the board.

Mnuchin is speaking in Davos, Switzerland. He was also encouraged by the market acceptance of the tax reform and dismissed worries about China’s buying of US Treasuries.His comment about the weak dollar certainly has an impact:

Here is how things look on the EUR/USD chart. It seems like the only way is up for the pair, which is down for the dollar.

The greenback was able to ignore the government shutdown but if teh US government pursues a weaker exchange rate, a clear change from the past, the dollar reacts.

Yohay Elam

Yohay Elam

Yohay Elam: Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I've accumulated. After taking a short course about forex. Like many forex traders, I've earned a significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I've worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.