Pursuits
The Dollar’s Trump Trade Approaches an Inflection Point
- Greenback whipsawed by Trump, Mnuchin comments on strength
- Hedge funds cut net bullish bets days before inauguration
Does the U.S. Dollar Have Further to Fall?
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If you want to know whether the Trump trade has legs, keep an eye on dollar-yen.
That’s because the exchange rate is trading near a key battleground spot for bulls and bears of 115 yen, according to Boris Schlossberg, managing director of foreign-exchange strategy at BK Asset Management in New York. Brown Brothers Harriman & Co. strategist Marc Chandler said the past week’s push higher in Treasury yields is starting to support the dollar again. Its short-term direction will likely determine whether the greenback extends the 8 percent rally against the Japanese currency since Donald Trump’s election victory in November.