U.S. Dollar Falls as Trump Attacks Fed

Investing.com - The U.S. dollar dove on Wednesday before recovering slightly after U.S. president Donald Trump reiterated his accusations that the Federal Reserve is not cutting rates fast enough.

The U.S. dollar index, which measures the greenback’s strength against a basket of six major currencies, fell 0.1% to 97.335 by 10:51 AM ET (14:51 GMT), after reaching a one-day low of 97.178.

Trump’s comments were made after three other countries’ central banks cut rates.

New Zealand’s central bank unexpectedly cut its benchmark policy rate to an all-time low, while the central banks of India and Thailand also cut rates due to slowing economic growth.

Trump tweeted that the Fed needs to “cut rates bigger and faster,” and that "our problem" was not China, but the U.S. central bank.

Meanwhile tensions between the U.S. and China continued to weigh, as investors flocked to gold and other safe haven assets. The price of gold reached a six-year high after the People’s Bank of China fixed the Chinese yuan just slightly below 7 per U.S. dollar.

The Japanese yen, which is seen as a safe-haven in times of market turmoil, rose with USD/JPY falling 0.6% to 105.85. The euro was higher, with EUR/USD rising 0.1% to 1.1211, while GBP/USD slipping 0.1% to 1.2150.

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