AFP, Hong Kong :
The dollar managed a small recovery against its major peers in Asia on Tuesday but retreated on most other regional units after Donald Trump’s Treasury Secretary nominee said a strong currency could hurt the US economy.
Steve Mnuchin’s comments came as the new president pressed on with his protectionist rhetoric, withdrawing the US from the Trans-Pacific Partnership and threatening to impose border taxes, while also warning Beijing over its designs in the South China Sea.
The developments in Washington just days after Trump was sworn in have done little to soothe investor worries that his plans to review trade deals and put Americans first could damage the global economy, particularly emerging markets.
Asian investors continued to move warily in early trade as they try to gauge what the new administration intends to do.
Mnuchin, who has yet to be confirmed in his role, said Monday in a written response to a senator’s question about a 25 percent jump in the dollar: “From time to time, an excessively strong dollar may have negative short-term implications on the economy.”
He also noted that it is currently “very, very strong”, Bloomberg News reported.
“The comments all but stuck a dagger into an already reeling greenback,” said Stephen Innes, a senior trader at OANDA.
