Trump says China won't be labeled a currency manipulator

Trump, for example, repeatedly accused China of manipulating its currency during the campaign. The two countries are trying to work together to keep North Korea from launching missiles.

In a tweet, he said he told Chinese President Xi Jinping in a meeting at the Mar-a-Lago resort last week that "a trade deal with the us will be far better for them if they solve the North Korean problem!"

Broadly flat against the yen, the greenback was 0.65% and 0.14% lower against its Australian and Canadian counterparts, trading at AUD$1.3178 CAD$1.3236 respectively. Senior administration officials stressed that the White House is working toward building a more constructive relationship with Beijing, not creating a more adversarial one.

Trump's remarks went against a long-standing practice of both U.S. Democratic and Republican administrations refraining from commenting on policy set by the independent Federal Reserve. "It's killing us", he declared. Trump has said he probably wouldn't have been elected if not for his stance on trade.

CHINA TRADE: China's export growth accelerated in March in a positive sign for global demand while import growth cooled.

While Trump's promises on the campaign often were emphatic and sometimes extravagant, he did at times switch positions or contradicted past statements. Exporters say the bank acts as an important financing mechanism for overseas deals.

USA markets will be closed Friday for the Good Friday holiday.

"I'm someone who is still optimistic that the administration is going to act on trade reform", said Scott Paul, president of the Alliance for American Manufacturing, which represents the United Steelworkers as well as leading American manufacturers.

"I don't have any advance knowledge of the report".

"Trump recognizes that the strong dollar is part of the US trade deficit problem", said Nariman Behravesh, the chief economist at IHS Markit. But even despite that, trade between China and North Korea actually increased by more than 30 percent in the first three months of that year.

Financial stocks helped to drag the FTSE 100 into the red this morning after President Trump said the dollar was "getting too strong" and backed low interest rates. It was also an acknowledgement, however, that Beijing had not recently intervened to weaken its currency.

On the campaign trail, Trump frequently slammed China for purposefully weakening its currency, the yuan, to make its goods cheaper on the world market.

Boon noted the dollar was already vulnerable anyway because of surges in safe-haven buying of U.S. Treasury bonds and the yen and the divergence between the dollar and economic data disappointments. "But I'm assuming it will not be labeling China as a manipulator", Baker says. Figures on Thursday showed China's trade surplus with the United States was $49.6 billion in the first quarter of 2017, little changed from $50.6 billion a year earlier.

"The rates could rise only two times a year, down from the market forecast of three times a year", said Aoki.

As a candidate, Trump pledged to instruct his Treasury secretary to label China a currency manipulator immediately after he took office.

In a surprise move, China on Wednesday abstained rather than joining Russian Federation in vetoing a U.N. Security Council resolution condemning the reported use of chemical weapons in a town in Syria.

The Huffington Post reported in February that Trump once called since-ousted National Security Adviser Michael Flynn to ask whether a strong or weak dollar is good for the economy.

But Mnuchin sat in on Wednesday's interview while Trump made the comment that sent the dollar falling.

"Trump's having a temporary impact", said Natixis analyst Nordime Naam, but strong consumer confidence numbers out Thursday helped turn things around. And it could also seek to use a 2016 law allowing it to block USA -backed financing for projects in China if it finds Beijing has not done enough to change trade practices.

Trump has ordered a study on trade abuses, and taken some preliminary steps toward renegotiating NAFTA.