US dollar paradox portends roller-coaster ride for currencies

London

IF VISIBILITY and predictability are two foundations upon which stable financial markets are built, comments from the White House this week on the US dollar suggest investors should brace for increased foreign exchange volatility.

US President Donald Trump and his top trade adviser waded into the debate over the currency's strength and the damage they say it is doing to US competitiveness, drawing rebuffs from Germany and Japan and casting doubt over the strength of global cooperation on foreign exchange policy.