Same Day FX Wars? Dollar Tumbles After Mnuchin Says “Weaker Dollar Better”, Undoing Euro Losses

The smell of currency war is rising in the air.
Less than six hours after the ECB lobbed the first trial balloon of the day, when Reuters reported that ECB policymakers were “growing worried” about the recent rapid gains in the Euro, sending the EURUSD sharply, if briefly lower, the entire move is now a distant memory following jawboning from US Treasury Secretary Steven Mnuchin, who moments ago said on CNBC that “having a weaker dollar is somewhat better for trade“, a statement which immediately spooked algos into dumping the USD…

… selling the USDJPY by 30 pips to 109.90…

This post was published at Zero Hedge on Aug 31, 2017.