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Dollar falls below ¥114.50 in Tokyo on Trump disappointment

JIJI

The dollar plunged below ¥114.50 in Tokyo trading on Thursday, coming under selling after U.S. President-elect Donald Trump gave no details of the economic policies of his incoming administration at a closely watched news conference overnight.

At 5 p.m., the dollar stood at ¥114.27-36, down from ¥116.06-06 at the same time Wednesday. The euro was at $1.0629-0629, up from $1.0559-0559, and at ¥121.50-51, down from ¥122.55-56.

The dollar moved on a weak note around ¥114.90 in early trading, reflecting investor disappointment at Trump’s first press conference since winning the U.S. presidential election in November.

The dollar was also pressured by falls in Tokyo stock prices and U.S. long-term interest rates, slipping below ¥114.40 in the afternoon.

Trump stopped short of commenting on specifics about large-scale corporate tax cuts and infrastructure investment, key promises of his election campaign, while expressing his dissatisfaction with the U.S. trade deficits with Japan and other countries.

“Trump’s press conference fueled investor concerns that the incoming administration will take a protectionist policy, thereby pushing down the dollar,” an official of a major Japanese bank said.

“Players who had built up dollar-long positions on hopes for (economic stimulus from) Trump moved to sell the dollar,” an official of a currency brokerage firm said.

After Trump refused to answer questions by some media outlets at the news conference, “some investors were also disappointed at his personality,” an official at a foreign exchange margin trading service firm said.