In a turbulent end of week trading session in North America on Friday, comments by US President Donald Trump sent the dollar crashing. Trump’s criticized higher interest rates and a strong US Dollar, saying they are hampering US economic growth.
The comments, set against the backdrop of escalating trade war talk with China, sent the greenback down from its near one year high. Meanwhile, Gold which normally trades inversely to the USD, made strong gains on the back of the dollar decline.
President Trump said in an interview with CNBC on Thursday that he was ready to impose tariffs on all $500 billion of goods the U.S. imports from China. Trump said that a strong dollar puts the United States at a disadvantage and that the Chinese yuan “was dropping like a rock”. In the interview, the President also turned his attention to the Federal Reserve. The president said he was “not happy” about increases in interest rates.
The headline making comments prompted traders to trim their upside bets on the greenback, lending support to gold and silver. However, despite today’s declines, the greenback is set to record second consecutive week of gains. In the past three months, the US Dollar has increased more than 5 percent. Along with consistently solid US Jobs reports, the dollar has gained on expectations that the Federal Reserve will raise the interest rates at least one more time in the coming months.
The comments by President Trump sent the US Dollar crashing from its near one year high. The US Dollar index which measures the greenback against a basket of six weighted currencies ended Friday down 0.77%, valuing the USD at $94.25. Elsewhere, the USD was down 0.68% against the Euro, 0.90% lower against the Japanese Yen and 0.91% down against the British Pound.
Gold closed 0.63% higher with a troy ounce valued at $1231.70. Silver rose 0.83% with a troy ounce valued at $15.535.