Earlier today the dollar was lagging against the Japanese yen, as well as against the euro. That came about as a result of Thursday's comments by US President Trump. He surprised the markets when he spoke specifically about the strength of the dollar and a possible increase in interest rates by the Federal Reserve Bank. In the interview on CNBC, Trump pointed out the disadvantages that the United States would suffer from a currency that was too strong and pointed to the fall of the Chinese yuan.
As reported at 10:28 a.m. (JST) in Tokyo, the USD / JPY pair traded at 112,583 yen, rising 0.15%; The pair touched a low of 112,351 yen earlier, while the maximum for the session is 112,623 yen. The EUR / USD trades at 1.1641, down 0.04%; the pair has moved from a low of 1.16357 to a high of 1.16598.
The White House Offers Clarity
Although Trump initially said he was displeased with the tighter monetary policy backed by the Federal Reserve, his administration later tried to provide some clarity. According to the White House statement, the President fully respects the independence of the Federal Open Market Committee of the Fed and its decision-making process. That could have been enough to appease the markets, which changed course, at least against the yen, and moved the dollar higher.