IMF’s Lagarde Urges Mnuchin to Clarify Remarks on Weak Dollar
- U.S. tax cuts should lead to dollar strengthening: Lagarde
- Mnuchin enodorses weak dollar in Davos, driving euro up
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International Monetary Fund Managing Director Christine Lagarde suggested that U.S. Treasury Secretary Steve Mnuchin may wish to explain his comments in which he appeared to back a weak dollar, adding that U.S. tax cuts will probably cause the world’s reserve currency to rally.
“I really hope that Secretary Mnuchin has a chance to clarify exactly what he said,” Lagarde said in Bloomberg TV interview with Francine Lacqua and Tom Keene at the World Economic Forum’s annual meeting in Davos, Switzerland. “The dollar is of all currencies a floating currency and one where value is determined by markets and geared by the fundamentals of U.S. policy.”