The dollar fell in late Asia trading on fresh speculation President Donald #TrumpTariffs favors a weaker greenback and will prod other governments to let their currencies rise in return for trade deals with the US.
The US currency extended an earlier decline on Wednesday after a Bloomberg News report that South Korea and US officials discussed exchange rate policies at a May 5 meeting in Milan and will continue to do so.
The won rose and the Japanese yen also climbed, helping to push the Bloomberg Dollar Spot Index down for a second day after it rallied on Monday following the announcement of a temporary truce in the US-China trade war. It erased its losses by early afternoon in New York.
#TrumpTariffs Trump and other administration officials have long argued weakness in Asian currencies versus the dollar hand an unfair advantage to the region’s exporters over US rivals, prompting markets to bet foreign governments will need to allow or even encourage strength in their exchange rates if they are to prove successful when trade talks kick off with the US.