Saturday, 7 January 2017

The yen has fallen, Trump raised fears about a possible trade war

The dollar rose against the yen on Friday during the Asian trading session, after US President-elect Donald Trump on Twitter criticized the largest Japanese car company, prompting fears of a possible trade war between the United States and the leading Asian trading partner.
"Toyota Motor said will build a new plant in Baja, Mexico, to build Corolla cars for U.S. NO WAY! Build plant in U.S. or pay big border tax," Trump said in a post on Twitter. USD/JPY was trading at 116.19, gaining 0.72%.
Yesterday, the US dollar has fallen relative to other major currencies, after the minutes of the last meeting of the Federal Reserve pointed to the uncertainty about the possible consequences of the economic policies of the future Trump presidency.
The index reached its highest level in 14 years on Tuesday as strong performance in the US manufacturing strengthened expectations about the high rate of monetary tightening in 2017.
But the dollar came under pressure on Wednesday after the Fed's minutes, which were held on December 13-14, showed that officials noted "considerable uncertainty" about the policy of President-elect Donald Trump.
Trump takes office on Jan. 20, and so far has not voiced the details of his economic policy.



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