Treasury Secretary Steven Mnuchin, under fire for comments he made earlier This kind of week seemingly advocating a weak dollar, told CNBC on Friday the U.S. carries a long-term interest in a strong greenback.
The dollar earlier had hit a three-week low on comments Mnuchin made Wednesday which the soft greenback would certainly be better for the United States. Since then, he in addition to President Donald Trump have said those remarks were taken out of context. Mnuchin in addition to Trump spoke as they attended the planet Economic Forum in Davos.
“I made the comment two days ago in a press gaggle inside morning. What I said was actually very even-handed in addition to consistent with what I said before,” Mnuchin said Friday in an interview on CNBC’s “Squawk Box.” He added a strong “long-term dollar” is actually inside country’s best interests.
However, comments via the president in addition to Treasury secretary did little to boost the dollar. In early trading, the currency was down about 0.4 percent against a basket of its global competitors, though the item was off the lows of the session.
Mnuchin’s comments were nothing terribly completely new via the administration. Trump himself has said inside past which he prefers a weak greenback.
For his part, the Treasury secretary repeated which he is actually not trying to influence the currency markets.
“Had the news printed my entire transcript the very first time as opposed to just taking out one little point in addition to kind of imply which I was trying to talk down the dollar, which I wasn’t doing,” he said. “As a matter of fact I was very clear in my open, saying the dollar is actually the most liquid trading market inside planet, in addition to where the dollar is actually inside short term is actually not of concern to us, in addition to we respect which the market sets where the dollar is actually.”
He added which the item is actually not the policy of the administration to intervene inside currency markets.
Bank of America Merrill Lynch strategists also think the markets misinterpreted Mnuchin’s comments in addition to should be focusing on what he said about the long-term dollar direction rather than the short-term market vagaries.
“Mnuchin’s statements, when taken in their entirety, reaffirm the existing strong USD policy by linking dollar value to relative US economic fundamentals … while implicitly acknowledging a more competitive in addition to therefore growth-supportive USD valuation situation vs. This kind of time last year. Recent comments by President Trump would certainly seem to confirm our read,” BofAML said in a note to clients.