Daily Times

HONG KONG: The dollar came under more pressure on Friday and Asian markets saw fresh losses after Treasury Secretary Steven Mnuchin lowered US growth expectations and appeared to temper Donald Trump’s belligerence towards China’s currency policy.

While New York’s blue-chip Dow index hit a record tenth successive all-time high, the Trump-fuelled global rally is showing signs of petering out with analysts suggesting the exuberance about hoped-for spending and tax cuts may have been overdone.

That appeared evident after Mnuchin forecast three percent growth by the end of next year, warning that the effect of certain measures would take time. That compared with the four percent Trump promised on the campaign trail.

In an interview with media, Mnuchin also appeared to wind back on his boss’s earlier threats to call China a currency manipulator, easing concerns about a possible trade stand-off between the world’s top two economic powers.

Stephen Innes, senior trader at OANDA, said in a note the comments, “Have left investors dangling about the US administration currency policy as there appears to be a subtle shift in the Trump administration’s rhetoric.”

The comments overshadowed his promise to push through tax cuts by August, and pursue deregulation on companies and banks.

“One reason the market is reading a great deal into (Mnuchin’s) views is the proximity of the comments to President Trump’s speech before a joint session of Congress next Tuesday,” Innes added.