Global Foreign Exchange Market

THE dollar tumbled to a three-year low of 89.391 (against a basket of major currencies) on Thursday, having lost 1.30% of its value over the week after US Treasury Secretary Steve Mnuchin said that a weaker dollar is favourable for the US as “it relates to trade and opportunities”.

However, losses were capped after Trump said he wants a stronger dollar and that Mnuchin’s comments were taken out of context. Besides, the dollar was volatile earlier this week amid the three-day partial government shutdown. Also, some downward pressure came from lower Richmond Fed Manufacturing Index in January at 14 from 20 in December (consensus: 19), as well as the negative growth rate of Existing Home Sales at -3.6% m/m in December (consensus: -3%).