The American dollar ended 2017 on a negative note and continued to perform poorly for the first few weeks of 2018 against most currencies. Today it registered growth for the first time in six weeks, largely due to fundamental factors. The dollar index was up 0.25% to 89.30.
The dollar has been affected by somewhat mixed signals from the United States. Treasury Secretary Mnuchin said last week that a weak dollar is good for international trade and could be beneficial for the US economy. However, President Trump quickly gave the opposite comment that he is looking to strengthen the dollar.
The stock markets in the United States are doing far better, consistently updating their peaks. They are looking quite attractive to investors right now, which might help explain a lower interest in the dollar.
Still, we expect the USD will return to the spotlight as we approach the March meeting of the Federal Reserve where likely interest rates in the United States will be increased again.
