July 19, 2018 / 6:04 PM / 5 months ago

FOREX-Dollar retreats from one-year high after Trump comments

    * Trump says strong dollar puts U.S. at a disadvantage
    * Dollar reverses gains
    * Graphic: World FX rates in 2018 tmsnrt.rs/2egbfVh

 (Recasts; adds new comment, Trump comments, updates prices)
    By Gertrude Chavez-Dreyfuss and James Thorne
    New York, July 19 (Reuters) - The dollar fell from a
one-year peak on Thursday after U.S. President Donald Trump
expressed concern about a strong currency, which he said puts
the United States at a disadvantage.
    The greenback also gave back some of its gains against the
Chinese yuan, which had  earlier dropped to a one-year low
against the dollar.
    In an interview with CNBC, Trump said a strong dollar "puts
us at a disadvantage," adding that the Chinese yuan "has been
dropping like a rock."
    A strong currency tends to make a country's exports more
expensive.
    Trump's comment "creates friction that creates gridlock all
across the governmental environment. That's obviously a solid
sign that the dollar could face some weakness ahead," said Juan
Perez, senior foreign exchange trader at Tempus Consulting in
Washington.
    "This is a brand new variable that we have to account for,"
he added.
    This is not the first time that Trump voiced his displeasure
with a strong dollar. He told the Wall Street Journal on three
separate occasions last year that the dollar was "too strong."
    Following his remarks, the dollar index, a gauge of its
value against a basket of six major currencies, fell 0.1
percent to 94.9552, after earlier touching a one-year high at
95.652.
    The dollar fell to a one-week low vs the yen, last trading
down 0.6 percent at 112.55 yen.
    The euro, meanwhile, fell 0.2 percent against the U.S.
dollar to $1.1665.
    The dollar also cut gains against the yuan in the early
afternoon session, and was last at 6.774 yuan, still up 0.4
percent on the day.
    So far this year, the yuan has weakened roughly 4.0 percent
versus the U.S. dollar.
    
========================================================
    Currency bid prices at 1338 EDT (1738 GMT):
 Description      RIC        Last      U.S.      Pct       YTD Pct  High Bid   Low Bid
                                       Close     Change    Change              
                                       Previous                                
                                       Session                                 
 Euro/Dollar                 $1.1666   $1.1638   +0.24     -2.75    +1.1678    +1.1575
 Dollar/Yen                  112.2500  112.8300  -0.51     -0.37    +113.1600  +112.0900
 Euro/Yen                    130.94    131.32    -0.29     -3.14    +131.4200  +130.7400
 Dollar/Swiss                0.9968    0.9987    -0.19     +2.31    +1.0043    +0.9960
 Sterling/Dollar             1.3036    1.3068    -0.24     -3.52    +1.3083    +1.2959
 Dollar/Canadian             1.3228    1.3169    +0.45     +5.18    +1.3289    +1.3160
 Australian/Doll             0.7375    0.7397    -0.30     -5.42    +0.7441    +0.7324
 ar                                                                            
 Euro/Swiss                  1.1630    1.1625    +0.04     -0.50    +1.1640    +1.1614
 Euro/Sterling               0.8947    0.8903    +0.49     +0.72    +0.8955    +0.8902
 NZ                          0.6755    0.6792    -0.54     -4.67    +0.6805    +0.6714
 Dollar/Dollar                                                                 
 Dollar/Norway               8.2127    8.1688    +0.54     +0.07    +8.2743    +8.1629
 Euro/Norway                 9.5806    9.5075    +0.77     -2.72    +9.5905    +9.5073
 Dollar/Sweden               8.8872    8.8648    +0.49     +8.36    +8.9549    +8.8513
 Euro/Sweden                 10.3689   10.3180   +0.49     +5.38    +10.3820   +10.3138
 
    
 (Reporting by Gertrude Chavez-Dreyfuss and James Thorne)
  
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