'I want to see a strong dollar,' US President Trump tells CNBC

'I want to see a strong dollar,' US President Trump tells CNBC

Speaking this morning at the World Economic Forum in Davos, Switzerland, Treasury Secretary Steven Mnuchin said he's not concerned with the recent weakening of the US dollar because when the currency goes down, it makes USA goods less expensive in other markets.

"This is about an America First agenda, but America First does mean working with the rest of the world" on free trade, Mnuchin told reporters at the World Economic Forum in this Alpine resort. "It will also raise fears about the risk of global currency wars again - although we should be careful not to read too much into an errant comment made at Davos".

Another factor that helped gold's upmove was the report that the US President Donald Trump is likely to underline his "America First" policies in his forthcoming speech at the World Economic Forum in Davos on Friday.

While the Treasury Secretary's acknowledgement that a weak dollar helps USA imports dovetails with sentiments coming from the president, his reiteration that the strength of the dollar reflects the strength of the economy is consistent with what he said last April. And although Mnuchin played down his remarks Thursday, the dollar fell further against major currencies.

"In the past, the Treasury secretary has always publicly said, 'I want a stronger dollar,"' Rogoff said.

His treasury secretary's comments had been "taken out of context", Mr Trump said in his interview with CNBC.

The Trump administration's chief spokesman for the USA dollar, Treasury Secretary Steven Mnuchin, has given an extra nudge to an already sliding greenback, shaking up currency markets in the process. S. dollar hit three-year lows after comments by U.

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The Commodity Futures Trading Commission, meanwhile, said it would have to furlough 95 percent of employees immediately. The government shutdown is threatened because Congress couldn't agree on what is called a continuing resolution (CR).

"We want the U.S. to be able to compete fairly".

Mr Trump said on Friday morning (AEDT) that he ultimately wanted the United States dollar to be strong.

Top world economic officials pushed back in Davos against fears of a currency war and stuck to a line that markets, not governments, dictate exchange rates.

Meanwhile, the U.S. dollar traded at 0.8043 euro, down 0.0063 euro; gold was up US$13.72 to US$1,363.43 per ounce as at 1.03pm. Lagarde noted that US tax reform signed by Trump last month is likely to lead to the dollar's strengthening in the medium term. "I think we are due for a rebound".

According to the daily, a weaker dollar makes USA goods cheaper to foreign markets, and can especially be seen as a boost for multinationals that derive a large portion of their income from outside the country.

Turning to Mr Mnuchin, he added: "And we seem to be recovering quite a bit more, Steve, thanks very much".

Mnuchin said that the U.S. continues to look good as an attractive place to invest especially after the tax cuts by the Trump administration.

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