Dollar rebounds, Treasury yields off lows, after Trump comments

Miranda GreerApr 14, 2017

The Dow Jones Industrial Average.DJI fell 67.02 points, or 0.33 percent, to 20,524.84, the S&P 500.SPX lost 6.78 points, or 0.29 percent, to 2,338.15 and the Nasdaq Composite.IXIC dropped 7.46 points, or 0.13 percent, to 5,828.70.Bank stocks had helped drive the overall market higher after U.S. President Donald Trump's November 8 election victory, but the rally has stalled as U.S. bond yields have declined and investors question Trump's ability to enact his agenda including tax cuts and economic stimulus.The S&P 500 financial index.SPSY slipped 0.7 percent, setting it up for a fifth straight day of losses.

Trading volumes could be lower than usual on Thursday ahead of the Good Friday holiday.

Japan's Nikkei fell 125.77 point to 18, 426.84 and Shanghai's Composite index was up 2.13 points at 3,275.96.

The US dollar tumbled on Wednesday after Trump told The Wall Street Journal that the greenback was "getting too strong" and would eventually hurt the US economy.

The Dow Jones industrial average fell 138.61 points, or 0.67 percent, to 20,453.25, the S&P 500 lost 15.98 points, or 0.68 percent, to 2,328.95 and the Nasdaq Composite dropped 31.01 points, or 0.53 percent, to 5,805.15.

Trump didn't rule out the possibility of re-nominating Fed Chair Janet Yellen once her current four-year term is up next year.

Trump told reporters he's pushing Xi to pressure North Korea to abandon development of nuclear weapons and missiles capable of striking the USA, a program that has also alarmed American allies in Japan and South Korea.

"President Xi wants to do the right thing", Trump said at a White House press conference Wednesday with Nato Secretary General Jens Stoltenberg.

"However it also continues to raise doubts about the administration's ability to deliver on campaign promises, which include the all-important pledge for tax reform". While China says the yuan's rate is market-determined, it restricts daily moves to 2 percent on either side of a daily reference rate.

Having hit a five-month low of 108.73 yen in early Asian trading, the dollar steadied at 109.10 yen.

The dollar index .DXY , which tracks the greenback against a basket of six trade-weighted peers, dropped 0.6 percent to 100.11. The Turkish Lira and South African Rand are obviously not correlated in any way, but with both currencies being plagued by political issues, this is impacting investor confidence and weakening economics that includes impending inflation risks.

"There is no change in our stance that the likelihood of us getting that label is low, but we won't be lowering our guards", Bank of Korea governor Lee Ju-yeol said on Thursday, after his board held monetary policy steady.

To the benefit of manufacturers and US exporters, American goods would become cheaper and thus, more attractive for foreign buyers.

On the data from, China reported its overall trade surplus rose in March after logging its first deficit in three years in February.

In commodities, oil prices fell as concerns about rising US output continued to weigh on markets. U.S. crude ended up 0.13 per cent at US$53.18 a barrel, while global benchmark Brent settled up 0.05 per cent at US$55.89.

The dollar's loss was gold's gain XAU= .

Earlier in the day Treasury yields had hit session highs, after a University of MI survey showed USA consumer sentiment unexpectedly improved in early April.

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