U.S. dollar continues Trump-related broad uptrend
By Gertrude Chavez-Dreyfuss
NEW YORK (Reuters) - The dollar rose against the yen on Friday, extending a broad trend that has been in place since U.S. President Donald Trump's election in November on expectations of more pro-growth policies to bolster an economy that has improved but sputtered at times.
The greenback has climbed for two straight days, pulling it back from seven-week lows against a basket of currencies on the view that it would gain from a rise in border tariffs, tax reform and future spending.
"Donald Trump's ambitious fiscal plans point to stronger growth in the coming quarters," said Fawad Razaqzada, market analyst at Forex.com in London.
"He has hit the ground running, making a number of executive orders in his first week as the president. So hopes that he will boost economic growth are alive and this may keep the dollar bid," he added.
Increasing expectations of tax reforms and fiscal stimulus are easing concerns of trade protectionism, analysts say.
"The heavily abstracted threat of a trade war is unlikely to shake investor confidence until the reality arrives," said Karl Schamotta, director of global product and market strategy at Cambridge Global Payments in Toronto.
The dollar briefly wobbled after the U.S. Commerce Department's first estimate of fourth-quarter gross domestic product showed that growth slowed more than expected, to a 1.9 percent annual rate due to weak exports. The market was expecting growth of 2.2 percent.
The economy grew only 1.6 percent in 2016, the weakest pace since 2011. [nLNNRCEDA1 Continued...