The US Dollar had a bad day at the office yesterday, suffering against pretty much everything.
This was undoubtedly due to statements from the US Treasury Secretary Steve Mnuchin during a panel discussion at the World Economic Forum in Davos that appear to indicate that the USA sees a weaker dollar as beneficial to US Trade. The policies of the USA have generally been in favour of a strong dollar as a barometer of economic prosperity for many years now, since the dollar got a bit too powerful in the Eighties, leading to the Plaza Agreement and the effective devaluation of the dollar through co-ordinated Central Bank interventions that had the unforeseen side-effect of creating the prolonged period of Japanese economic stagnation from which they are only just emerging.
The US Treasury appears to be happy to let markets dictate the value of the dollar, presumably until such time as suits their purpose to do otherwise. This is not unexpected in a pro-business, pro-market administration.