USD Bounces Back as Japan, Germany Rejects Trump’s Currency Devaluation Statement

The dollar rose along with Treasury yields and managed to redeem its losses last Tuesday after Japan and Germany rejected Donald Trump’s statements that their country’s respective currencies were the cause of the dollar’s devaluation since these countries use the USD to induce value into their own currencies. Japan’s head currency official has stated that Trump’s comments were “wide off the mark”, while Angela Merkel rejected accusations that Germany was gaming in the FX market. The value of the USD initially declined last Tuesday after Trump’s comments suggested that the newly-minted president wanted a weaker value for the US dollar.