The U.S. dollar and currency-related exchange traded fund faltered Friday after President Donald Trump threatened to enact tariffs on all Chinese imports and censured the Federal Reserve’s interest rate policy.

The PowerShares DB U.S. Dollar Index Bullish Fund (NYSEArca: UUP), which tracks the USD’s movements against a basket of major developed currencies, declined 0.8% as the U.S. Dollar Index (DXY) retreated 0.8% to 94.4

On the other hand, traders considering a bearish position on the dollar capitalized on the weakness with the PowerShares DB US Dollar Index Bearish (NYSEArca: UDN), the direct inverse play against UUP, which gained 0.9% Friday.

The U.S. dollar depreciated Friday after Trump accused many major exporting countries, including China and the European Union, of manipulating their currencies, arguing that the unfavorable global monetary policies have reduced U.S. exporters’ competitive advantage, reports Jeff Cox for CNBC.

“They’re making money easy and their currency is falling,” Trump told CNBC. “In China their currency is dropping like a rock and our currency is going up, and I have to tell you it puts us at a disadvantage.”

Euro, Yuan, Yen Strengthen Against USD

Following Trump’s accusations, the euro, yuan and yen currencies strengthened against the USD.

China has long maintained a weak currency to support its export industries. Consequently, Trump has implemented tariffs on billions of dollars in imported goods as part of his strategy to level the field.

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