US Stocks Close Lower After Trump's Dollar Comments
- Author: Ronnie Bowen Jan 18, 2017,
Jan 18, 2017, 1:17
The dollar was down a third of 1 percent against a basket of currencies, and down 1 percent against the Japanese yen to a six-week low of 113.04.
Elsewhere, with president-elect Trump's inauguration looming on Friday, investors are anxious about a strengthening dollar and a potential trade war erupting with China. At 5.50pm GMT, the Brent front month futures contract was up 0.43% or 24 cents at $56.10 per barrel, while the West Texas Intermediate (WTI) was 1.13% or 59 cents lower at $52.96 per barrel.
USA stocks and the dollar fell while gold and government bonds rose on Tuesday as investors fled for safety after President-elect Donald Trump said the US currency was too strong and they also questioned if his campaign promises would be fulfilled. "And it's killing us", he told the Journal.
The dollar first rose after Donald Trump's election win thanks in part to an idea the president-elect would increase infrastructure spending. "This left markets wondering what was in store under Trump".
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Trump's remarks that the dollar is too strong and hurting US competitiveness pushed the greenback down across the board, even against sterling, which is under heavy pressure as May is expected to confirm her "hard Brexit" stance later on Tuesday. The yield earlier fell to 2.305 percent, the lowest since November 30.
The pound went in the other direction, recovering a lot of its lost ground from over the past few days.
At 5.40pm GMT, the Comex gold futures contract for February delivery was up 1.43% or $17.10 at $1,213.30 an ounce, while spot gold was 0.88% or $10.64 higher at $1,213.87 an ounce, as fears over the incoming Donald Trump administration being the most protectionist in United States history sent investors seeking safe-haven assets. The metal stood at US$5,785 a tonne, down 1.4 percent on the day.
Silver was up 0.7% from the start of last year to January 18, this year it is booming. Brent crude, the global benchmark, rose 7 cents a barrel to US$55.93.