Dollar slides

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TOKYO: The dollar slumped broadly on Thursday, falling to a five-month low against the yen, after U.S. President Donald Trump helped accelerate its recent decline by saying the currency was too strong.

The greenback took a heavy hit after Trump told the Wall Street Journal that the dollar "is getting too strong" and that he would prefer the Federal Reserve to keep interest rates low. The comments were a fresh reminder of the president´s protectionist trade rhetoric, which has been a source of concern for dollar bulls.

"Trump´s comments came at a time when some had begun to think that perhaps the president was not as supportive of a weak dollar as initially perceived," said Shin Kadota, senior strategist at Barclays in Tokyo. "But he reiterated his view that a strong currency hurts U.S. competitiveness, adding fresh downward pressure on the dollar.

"The U.S. currency was 0.3 percent lower at 108.805 yen after stooping to a five-month low of 108.730. In a bearish technical signal, the pair broke below its 200-day moving average of 108.75.The dollar has shed 2 percent against the yen so far this week, with the safe-haven Japanese currency already on a bullish footing because of a rise in geopolitical tensions.