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Treasury Secretary Mnuchin caused market correction
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Loading...New U.S. Treasury Secretary Steven Mnuchin took the edge off that optimism overnight when he said any policy steps by the Trump administration would probably have only a limited impact this year.
The comments, made in his first televised interviews since taking office last week, suggested much work was still needed on a sweeping tax reform plan that Mnuchin called his main priority.
They knocked the dollar back and it was trading down 0.2 percent against a basket of other major currencies at 100.82 , leaving it slightly down on the week and facing its first weekly loss in three.
"Mnuchin's comments were less belligerently reflationary than they could have been, in a dollar strength context, and that probably did much of the damage (to the dollar)," said UBS Wealth Management currency strategist Geoffrey Yu, in London.
"But ultimately outside of the U.S. there is reflation happening and data is looking strong, so perhaps it’s time to just take some dollar longs off the table... We need additional information to sustain (the Trumpflation trade)."
Subdued forecasts from European bluechips including BASF and Vivendi and a drop in mining shares following overnight declines in metals prices dragged the benchmark STOXX 600 index down 0.3 percent.
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