The dollar retreated against major rivals on Wednesday, with the euro reaching a three-year high, as US Treasury Secretary Steven Mnuchin said that a weaker dollar was good for the US economy.
The dollar was already being weighed down by US President Donald Trump’s move to slap stinging tariffs on certain imports.
“Obviously a weaker dollar is good for us is good as it relates to trade and opportunities, but longer-term I think the strength of the dollar is a reflection of the strength of the US economy…” Mnuchin said at the World Economic Forum in Davos.
In Wednesday trading, the euro reached $1.2367—the highest level since December 2014.
“The greenback has today extended its losses after US Treasury Secretary Steven Mnuchin at the World Economic Forum in Davos said, what we all know, that a weaker dollar is ‘good’ for US trade,” said Fawad Razaqzada, market analyst at Forex.com.
“The US dollar has fallen back across the board… following a press briefing from US Treasury Secretary Steven Mnuchin in which he welcomed the depreciation,” said David Cheetham, chief market analyst at XTB trading group.—AFP