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Mnuchin says Trump gave 'warning shot' to Russia, China on currency - CNBC

Reuters  |  WASHINGTON 

(Reuters) - U.S. Donald Trump's post on currencies in and was a warning to those countries against devaluing their currencies, Treasury Steve said on Tuesday in an interview with

Trump accused and on Monday of devaluing their currencies while the raises interest rates, prompting to accuse the of sending confusing messages.

"It was a warning shot at and about devaluation. has devalued their currency in the past," said. "He's watching it."

He said post was not related to Trump's view on the strength of the dollar.

Trump said on on Monday: "and are playing the Currency Devaluation game as the U.S. keeps raising interest rates. Not acceptable!"

The tweet referred to what Trump sees as unfair trading advantages: If a country's currency is artificially low, its exports are more competitive. Higher U.S. interest rates would generally increase the value of the dollar, making U.S. exports more expensive.

Since Trump took office in January 2017, the dollar has weakened substantially against most currencies, including the Chinese yuan and, until the imposed sanctions on in the last few weeks, the ruble.

Speaking in on Tuesday, noted that what Trump said seemed to contradict the U.S. Treasury's report last week that refrained from naming any major trading partners as currency manipulators.

"So it seems like the information being released by the U.S. side is a bit chaotic," she told a daily briefing.

(Reporting by Doina Chiacu; Editing by Chizu Nomiyama)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Tue, April 17 2018. 17:55 IST