Investing.com - The U.S. dollar index was hovering near two-month lows on Wednesday in Asia after U.S. President Donald Trump said the officials of the Federal Reserve “don’t have a clue” on rates.
Overnight, Trump tweeted that the euro and other currencies are undervalued against the dollar, “putting the U.S. at a big disadvantage. The Fed Interest rate way too high, added to ridiculous quantitative tightening! They don’t have a clue!”’
Trump also said in a separate tweet that the U.S. has low inflation, calling it “a beautiful thing.”
The U.S. dollar index that tracks the greenback against a basket of other currencies was at 96.645 by 11:45 PM ET (03:45 GMT), not far from the 96.459 level it hit on Monday, its lowest since April 12.
Traders have been speculating on the possibility of the central bank cutting rates this year due to slowing inflation and rising trade tensions after Fed Chair Jerome Powell signalled the bank would “act as appropriate to sustain the expansion, with a strong labor market and inflation near our symmetric 2% objective.”
The Fed will hold its next policy meeting on June 18-19 and is expected to keep rates unchanged.
The USD/CNY pair was up 0.07% to 6.9154. Citing unnamed traders, Reuters reported that the People’s Bank of China will inject CNY 35 billion ($5.06 billion) through open market operations on Wednesday.
The central bank is injecting CNY 15 billion through seven-day reverse bond repurchase agreements and CNY 20 billion through 28-day reverse repos, according to the report.
The USD/JPY pair was down 0.02% to 108.46.