Citywire for Financial Professionals
Stay connected:

View the article online at

FTSE falls despite dollar recovery from Trump sell-off

FTSE 100 closes down, despite pressure from stronger pound easing as dollar sell-off sparked by US president Donald Trump calmed.

FTSE falls despite dollar recovery from Trump sell-off

Update: The FTSE 100 has closed down, despite the pressure from a stronger pound easing as a dollar sell-off sparked by US president Donald Trump calmed.

The UK blue-chip index closed 21 points, or 0.3%, at 7,328, despite the pound ending the day down against the dollar, which recovered from a slump sparked by Trump's comments the greenback was 'too strong'.

But it's still been a strong week for the pound, currently changing hands at $1.252, up from $1.237 earlier in the week. A stronger pound tends to hamper the FTSE 100, whose members rely on overseas markets for around three-quarters of their revenues.

Trump said in an interview with the Wall Street Journal the dollar was 'getting too strong' and that he would prefer the US Federal Reserve keep interest rates low.

'I think our dollar is getting too strong, and partially that's my fault because people have confidence in me,' he said. 'But that's hurting - that will hurt ultimately. It's very, very hard to compete when you have a strong dollar and other countries are devaluing their currency.'

But in a marked shift, Trump refused to label China a currency manipulator, having made that claim on the campaign trail, saying it could jeopardise talks with the country over tackling North Korea.

Analysts at Rabobank said the market's response to Trump's election, rallying on prospects of higher growth and inflation, had left the president in a difficult position.

'The Fed's March rate hike and discussion as regards further normalisation of policy (including the unwinding of the Fed's balance sheet) will serve to underpin the view that the economy is indeed on the mend, placing additional pressure on dollar strength,' they said.

'The difficulty for Trump on this front is that this all clearly runs counter to a weaker currency and offers him little room for accusing trade partners (particularly those in regions that are maintaining soft monetary policies of their own) that they are actively manipulating their currencies with a view to damaging the US economy for their own financial gain.'

leave a comment

Please sign in here or register here to comment. It is free to register and only takes a minute or two.

News sponsored by:

The Citywire Guide to Investment Trusts

In this guide to investment trusts, produced in association with Aberdeen Asset Management, we spoke to many of the leading experts in the field to find out more.

Watch Now

More about this:

What others are saying


Today's articles

Tools from Citywire Money

From the Forums

+ Start a new discussion

Weekly email from The Lolly

Get simple, easy ways to make more from your money. Just enter your email address below

An error occured while subscribing your email. Please try again later.

Thank you for registering for your weekly newsletter from The Lolly.

Keep an eye out for us in your inbox, and please add to your safe senders list so we don't get junked.


Nigel Thomas to retire after 40 years in funds

by Daniel Grote on Apr 26, 2018 at 16:42

Sorry, this link is not
quite ready yet