The US dollar slumped to a seven-week low against Japan’s yen late Tuesday, and continued to trade lower against a slew of currencies on Wednesday, after President-elect Donald Trump said that the buck was “too strong”.
In an article in the Wall Street Journal, Mr Trump said the strength of the US dollar against China's yuan “is killing us”.
That spurred a ferocious selling spree among traders and investors, sending the dollar to its lowest level against Japan’s currency in almost two months.
Mr Trump has in recent weeks developed a reputation for being able to wipe billions of market value off companies with a single – sometimes seemingly offhand – comment or tweet.
Last week, German carmaker stocks sold off sharply after Mr Trump in a newspaper interview warned he would impose a border tax of 35 per cent on vehicles imported from abroad to the US market.
Earlier this month, close to $25bn was shaved off the value of the S&P 500’s top nine pharmaceutical companies in a matter of minutes after the President-elect accused them of “getting away with murder”.
On Wednesday, Gold – broadly considered a safe asset during times of economic uncertainty – was rising, taking its gains over the last three weeks to around 8 per cent. Traders said that with ample uncertainty about Mr Trump’s policies, the metal was particularly attractive.
On Tuesday, the pound enjoyed its biggest single-day jump against the dollar since 1998, according to Reuters, after Prime Minister Theresa May said in an eagerly anticipated speech that she wanted the UK to emerge from Brexit negotiations “more united” and “outward looking” than before.
Despite maintaining that Britain will not continue membership of the single market after Brexit, Ms May, in a speech at Lancaster House, emphasised Britain’s aim to build relationships outside of the EU while remaining a “best friend” to the bloc.
The pound gave back some of those gains in early trading Wednesday but remained resilient.
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