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Trump tweeted that he was going to sell against the dollar.
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08:09AM
Jul 5,2019
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SMM News: according to a tweet posted by US President Donald Trump on July 3, strategists believe that the US Treasury may intervene in the US dollar to weaken the dollar exchange rate, US media said.

Bloomberg reported on July 4 that Trump tweeted on the 3rd that other countries were playing a "drama of currency manipulation," adding that "the United States has to act with equal strength, otherwise it will have to sit aside like a fool. Politely watch other countries continue to play games."

Market watchers believe Trump's tweet this time seems to be more than just words.

The US has reportedly not intervened in the foreign exchange market since the 2011 earthquake in Japan, when the yen soared and the US Treasury stepped in to support the dollar.

"although the Treasury report came to a different conclusion about currency manipulation a month ago, Trump's obsession with this topic means we should be prepared for anything," said Bipa Ray, head of North American foreign exchange strategy at Imperial Commercial Bank of Canada. " "for decades, the US Treasury has not entered the market to weaken the dollar, but we would not be surprised if there was a change during the Trump administration," he said. "

The euro hit an intraday high after Trump posted the currency manipulation tweet and later fell back, the report said.

Mr Ray said the risk of currency intervention would increase if the Fed did not implement easing at its policy meeting this month. Trump has repeatedly put pressure on Fed Chairman Powell in recent months, accusing the Fed last month of refusing to cut interest rates like a "stubborn child."

Even if the Fed cut interest rates within a few weeks, as bond traders generally expected, Bank of America said it would be difficult for Bank of America to satisfy Trump's appetite, the report said.

"at least the president is likely to succeed for the time being," currency strategist Ben Randall told Bloomberg via email. " However, if the US economy continues to be strong and the dollar shows corresponding resilience, "then there is a problem," he said. "in this case, if the Fed cuts interest rates less than expected, the Trump administration will be more likely to intervene in the currency market."

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