The euro has rallied significantly on Friday after another sweep by US President Donald Trump.
The European common currency was still expanding the price gains from European trading in the late US foreign exchange business. Most recently, it traded at $ 1.1724. The European Central Bank (ECB) had set the afternoon reference rate at 1.1670 (Thursday: 1.1588) dollars. The dollar had cost 0.8569 (0.8630) euros.
Trump had put pressure on the dollar on all major currencies with allegations of currency manipulation to China and the European Union (EU). "China, the EU, and others have manipulated their currencies," he wrote Friday on the short message service Twitter. He criticized the low-interest rates there, while in the US, interest rates would rise. Low key interest rates usually weigh on the price of a currency. The US dollar's growing dollar will undermine US competitiveness and jeopardize its political success, the US president said.
The statements of Trump should not burden the dollar according to experts but not sustainably. "The US Federal Reserve is independent and will not change its monetary policy because of Trump," said Esther Reichelt, foreign exchange expert from Commerzbank. She explained the price rash with a short-term reaction. Doubts about the independence of the Fed, however, could lead to higher exchange rate fluctuations. "However, confidence in the independence of the Fed is still high," said Reichelt. Trump has even put pressure on the Fed with its tax reform and the introduction of tariffs. The tax reform is boosting growth and tariffs have created growing price pressure. US Federal Reserve Chairman Jerome Powell recently announced further gradual rate hikes.
