The US Dollar Index was rocked into the close of the NY trading session as President Trump’s Treasury Secretary Nominee, Steve Mnuchin, told the Senate that a strong dollar may not always be beneficial to the economy.
According to a Bloomberg report, Mnuchin wrote:
“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. From time to time, an excessively strong dollar may have negative short-term implication.”Mnuchin’s remarks sent the Dollar Index tumbling down to a low of 99.94 - a price not seen since December 8, 2016. The Dollar Index recovered a bit during the final minutes of the trading day, closing at 99.99.
The unexpected news also hit several Forex pairs quite hard, with the biggest drop taking place on the USD/JPY pair, which dropped 0.43% in the last 30 minutes of the NY trading session.