Investing.com - The U.S. dollar index was unchanged on Wednesday in Asia after U.S. President Donald Trump said the officials of the Federal Reserve “don’t have a clue” on rates.
Overnight, Trump tweeted that the euro and other currencies are undervalued against the dollar, “putting the U.S. at a big disadvantage. The Fed Interest rate way too high, added to ridiculous quantitative tightening! They don’t have a clue!”’
Trump also said in a separate tweet that the U.S. has low inflation, calling it “a beautiful thing.”
The U.S. dollar index that tracks the greenback against a basket of other currencies was unchanged at 96.645 by 11:45 PM ET (03:45 GMT).
Traders have been speculating on the possibility of the central bank cutting rates this year due to slowing inflation and rising trade tensions after Fed Chair Jerome Powell signalled the bank would “act as appropriate to sustain the expansion, with a strong labor market and inflation near our symmetric 2% objective.”
The Fed will hold its next policy meeting on June 18-19 and is expected to keep rates unchanged.
The USD/CNY pair was up 0.07% to 6.9154. Citing unnamed traders, Reuters reported that the People’s Bank of China will inject CNY 35 billion ($5.06 billion) through open market operations on Wednesday.
The central bank is injecting CNY 15 billion through seven-day reverse bond repurchase agreements and CNY 20 billion through 28-day reverse repos, according to the report.
The USD/JPY pair was down 0.02% to 108.46.
The AUD/USD pair and the NZD/USD pair were both down 0.2%.© Reuters.
HIGH RISK INVESTMENT WARNING: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 71.36% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
TRADE.com is a trade name operated by Trade Capital Markets (TCM) Limited (ex. Leadcapital Markets Limited), which is authorized and regulated by the Cyprus Securities and Exchange Commission, license number 227/14 and authorized by the FSCA, South Africa (FSP No. 47857). Office Address: Strovolos, 128 – 130 Limassol Avenue, Office 301, 3rd floor, CY 2015, Nicosia, Cyprus.
Restricted Jurisdictions: We do not establish accounts to residents of certain jurisdictions including Japan, Canada and USA. For further details please see Terms & Conditions.