Newsmax TV & Webwww.newsmax.comFREE - In Google Play
Newsmax TV & Webwww.newsmax.comFREE - On the App Store
Tags: dollar | mnuchin | treasury | currency

Dollar Hits 3-Year Low After Mnuchin Says Weakness Helps Trade

Dollar Hits 3-Year Low After Mnuchin Says Weakness Helps Trade
Treasury Secretary Steven Mnuchin, right, holds up a sheet of new $1 bills, the first currency notes bearing his signature, for his wife Louise Linton, left, to see in November. (Photo: AP/Jacquelyn Martin)

Wednesday, 24 January 2018 01:11 PM EST

The U.S. dollar extended recent weakness, hitting three-year lows again, and U.S. bond prices eased on Wednesday after U.S. Treasury Secretary Steven Mnuchin said he welcomed its weakness in the currency.

Fear of protectionism from the U.S. economy, the world's largest, had already pushed the greenback to a three-year low, but Mnuchin's remark at the annual Davos summit of business and political leaders pushed it down further.

Adding to those fears, Commerce Secretary Wilbur Ross said U.S. trade authorities are investigating whether there is a case for taking action over China's infringements of intellectual property.

U.S. President Donald Trump had slapped steep tariffs on imported washing machines and solar panels on Monday.

The dollar index, which measures the greenback against a basket of six major currencies, was down 0.93 at 89.283, slipping below 90 for the first time since December 2014.

"It's quite significant given that this is the first time in a very long time that a Treasury secretary has spoken against a strong dollar," said Sireen Harajli, FX strategist at Mizuho.

The S&P 500 was flat, paring gains after the Ross comments, which fueled trade war fears. The dollar's weakness, however, was providing some support since it helps U.S. multinationals' earnings.

"To the extent that global growth is solid and a sizable portion of S&P earnings are earned overseas, I don't look at this as being dollar negative at all," said Joseph LaVorgna, chief economist for Americas at Nations in New York.

Also weighing on the S&P 500, GE shares were down 2.7 percent. In the latest blow to the largest U.S. industrial conglomerate, U.S. securities regulators are probing a massive insurance charge GE announced last week. GE also forecast more weakness at its power business this year, a unit that produced 60 percent of profits as recently as 2016.

The Dow Jones Industrial Average rose 51.4 points, or 0.2 percent, to 26,262.21, the S&P 500 lost 3.03 points, or 0.11 percent, to 2,836.1 and the Nasdaq Composite dropped 43.40 points, or 0.58 percent, to 7,416.89.

The pan-European FTSEurofirst 300 index lost 0.51 percent and MSCI's gauge of stocks across the globe gained 0.12 percent.

Euro zone businesses enjoyed a much better start to 2018 than anyone polled by Reuters expected, ramping up activity at the fastest rate since the middle of 2006, a survey showed on Wednesday.

U.S. Treasury debt prices slumped, also after Mnuchin's comments.

Benchmark 10-year notes last fell 8/32 in price to yield 2.6502 percent, from 2.622 percent late on Tuesday.

In the oil market, U.S. crude rose 0.51 percent to $64.80 per barrel and Brent was last at $69.85, down 0.16 percent on the day.

© 2023 Thomson/Reuters. All rights reserved.

The U.S. dollar extended recent weakness to three-year lows after U.S. Treasury Secretary Steven Mnuchin said he welcomed weakness in the currency.
dollar, mnuchin, treasury, currency
Wednesday, 24 January 2018 01:11 PM
Newsmax Media, Inc.

Sign up for Newsmax’s Daily Newsletter

Receive breaking news and original analysis - sent right to your inbox.

(Optional for Local News)
Privacy: We never share your email address.
Join the Newsmax Community
Read and Post Comments
Please review Community Guidelines before posting a comment.
Get Newsmax Text Alerts

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

© Newsmax Media, Inc.
All Rights Reserved
© Newsmax Media, Inc.
All Rights Reserved