Global Forex: Dollar falls vs yen on US policy doubts
The US dollar fell to a more than two-week low against the Japanese yen on Friday
Official foreign currency reserves have depleted by over $1.9 billion during the last three-and-a-half months. PHOTO: FILE
NEW YORK:
The US dollar fell to a more than two-week low against the Japanese yen on Friday as investors doubted the likelihood of swift tax reform and a quick spending boost from US President Donald Trump’s administration.
On Thursday, US Treasury Secretary Steven Mnuchin suggested that much work was still needed on key elements of a tax reform plan; one of the policies investors had anticipated would spur inflation and drive up US interest rates. Analysts noted that Federal Reserve meeting minutes released on Wednesday reinforced doubts about a rate hike next month since voting members showed much less urgency to tighten credit. The dollar fell as much as 0.6% against the safe-haven yen to 111.95 yen.
Published in The Express Tribune, February 26th, 2017.
The US dollar fell to a more than two-week low against the Japanese yen on Friday as investors doubted the likelihood of swift tax reform and a quick spending boost from US President Donald Trump’s administration.
On Thursday, US Treasury Secretary Steven Mnuchin suggested that much work was still needed on key elements of a tax reform plan; one of the policies investors had anticipated would spur inflation and drive up US interest rates. Analysts noted that Federal Reserve meeting minutes released on Wednesday reinforced doubts about a rate hike next month since voting members showed much less urgency to tighten credit. The dollar fell as much as 0.6% against the safe-haven yen to 111.95 yen.
Published in The Express Tribune, February 26th, 2017.