USD: Intervention to weaken unlikely, but cannot be ruled out – ABN AMRO
|Analysts at ABN AMRO note that the US exchange rate policy has been in the spotlight recently, and US Treasury Secretary Mnuchin was quizzed on the topic in a post-G7 finance minister meeting press briefing this afternoon.
Key Quotes
“In his remarks, Mr Mnuchin confirmed that there is no change to the US administration’s dollar policy ‘as of now’, although he did not rule anything out either, stating ‘this is something we could consider in the future’. This followed a tweet by President Trump on 3 July hinting at currency intervention, when he said the US should ‘match’ China and Europe who he accused of ‘playing [a] big currency manipulation game’.”
“We judge that unilateral intervention to weaken the dollar by the US authorities is unlikely, as that there is little chance of it being effective, but given the erratic moves of the administration it is not something we would dismiss outright.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.