SINGAPORE (Reuters) - The dollar traded above its recent lows against major rivals on Friday, having bounced after U.S. President Donald Trump said he wanted a “strong dollar”, contradicting earlier comments made by Treasury Secretary Steven Mnuchin. "Ultimately, I want to see a strong dollar," Trump said, sparking a rally for the US currency, which had hit a three-year low against the euro earlier in the day, regained some ground after Trump spoke. The ECB meets later on Thursday against a backdrop of a single currency that has gained more than 3 percent already this year after double digit gains last year amid a broad-based dollar sell-off that intensified on Wednesday when U.S. Treasury Secretary Steven Mnuchin said a weaker dollar was “good for us”. Mnuchin, whose comments were a departure from traditional U.S. currency policy, said on Thursday that he was not concerned where the dollar was in the short term. Mr Mnuchin added: "Longer term, the strength of the dollar is a reflection of the strength of the US economy and the fact that it is and it continues to be the primary currency in terms of the reserve currency." Then-Treasury Secretary Robert Rubin began using that phrase when he became Bill Clinton's Treasury secretary in 1995 and it has since been repeated by every Treasury secretary - whether under Democratic or Republican administrations. During the 2016 presidential campaign and since taking office, President Donald Trump has at times said he would prefer to see the dollar fall in value compared to other currencies as a way to boost U.S. exports.
Financial analysts interpret remarks by United States Secretary of the Treasury Steven Mnuchin as an indication that the United States may change the strong dollar policy that it has held since the 1990s. This is evidenced by the fact that he did not deliver the usual message that a strong dollar is good for America.