Donald Trump warned the dollar was getting too strong, sending the US currency lower
The pound rose above $1.25 on Thursday after President Trump said the dollar was ‘getting too strong’ in comments that drove the US currency broadly lower
The pound is up against both the dollar and the euro this morning.
Sterling is up 0.1% against the dollar at $1.2548, and 0.2% against the euro at €1.1778.
The pound is back above $1.25 following a warning from President Trump that the dollar “is getting too strong” because people have confidence in him.
He told the Wall Street Journal:
I think our dollar is getting too strong, and partially that’s my fault because people have confidence in me. But that’s hurting — that will hurt ultimately.
Look, there’s some very good things about a strong dollar, but usually speaking the best thing about it is that it sounds good. It’s very, very hard to compete when you have a strong dollar and other countries are devaluing their currency.
The President also suggested he would like the Federal Reserve to keep US interest rates low:
I do like a low-interest rate policy, I must be honest with you.
The comments sent the dollar index – which tracks the US dollar against six major currencies – to its lowest level since 30 March.