The dollar is tumbling after Trump said it was 'too strong'

The dollar is tumbling.

The US dollar index is down by 1.0% at 100.51 as of 7:44 a.m. ET.

The index’s weakening follows two comments from President-elect Donald Trump in an interview with the Wall Street Journal.

Trump said that the border-adjustment plan, which would tax imports and exempt exports, is “too complicated.” Additionally, he said the the dollar was “too strong.”

“Our companies can’t compete with [Chinese companies] now because our currency is too strong. And it’s killing us,” Trump told the Wall Street Journal.

“The investment community, like Americans themselves, is grappling with how literal to take the seemingly visceral remarks,” Marc Chandler, global head of currency strategy noted. “In the larger picture, of the numerous factors that impact foreign exchange rates, the wish and desires of officials do not often seem to be particularly salient.”

“The current USD correction could continue for a few more days as positioning clears out, but we believe this will ultimately create opportunities for FX investors. Strong US data should continue to be the main source of support for USD, focused against low-yielding DM,” argued a Morgan Stanley team led by Hans W. Redeker.

As for the rest of the world, here’s the scoreboard as of 7:55 a.m. ET:

  • The British pound is up by 2.3% at 1.2329 against the dollar following Prime Minister Theresa May’s first major speech outlining the plan for Brexit. She confirmed that Britain is looking at a “hard Brexit” — aka it will leave the single market. Separately, data from the Office for National Statistics showed consumer prices in the UK rose 1.6% in December, up from November’s 1.2% print.
  • The euro is up by 0.8% at 1.0688 against the dollar. Meanwhile, the latest reading for the German ZEW Economic Sentiment came in at 16.6 for January, below expectations of 18.3, but above the prior reading of 13.8.
  • The Russian ruble is up by 1.1% at 59.1753 per dollar, while Brent crude oil, the international benchmark, is up by 1.2% at $56.53 per barrel.
  • The Japanese yen is up by 0.6% at 113.55 per dollar.
  • The Mexican peso is up by 0.7% at 21.5846 per dollar.

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