Reuters: Trump says he's 'not thrilled' with Fed's Powell for raising interest rates

WASHINGTON / NEW YORK, Aug 20 (Reuters) - U.S. President Donald Trump said on Monday he was "not thrilled" with Federal Reserve Chairman Jerome Powell for raising interest rates and accused China and Europe of manipulating their respective currencies.

Trump, who nominated Powell last year to replace former Fed Chair Janet Yellen, told Reuters in an interview that he believed the U.S. central bank should be more accommodating.

"I'm not thrilled with his raising of interest rates, no. I'm not thrilled," Trump said in the interview.

The dollar fell on Monday as investors pulled out of the safe-haven currency with optimism rising over upcoming U.S.-China trade talks, and after Trump criticized the pace of the Federal Reserve's interest-rate hikes.

RELATED: Trump nominates Jerome Powell to lead U.S. Federal Reserve

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Trump nominates Jerome Powell to lead U.S. Federal Reserve
US President Donald Trump shakes hands as he announces his nominee for Chairman of the Federal Reserve, Jerome Powell, in the Rose Garden of the White House in Washington, DC, November 2, 2017. / AFP PHOTO / SAUL LOEB (Photo credit should read SAUL LOEB/AFP/Getty Images)
US President Donald Trump announces his nominee for Chairman of the Federal Reserve, Jerome Powell (L), in the Rose Garden of the White House in Washington, DC, November 2, 2017. / AFP PHOTO / SAUL LOEB (Photo credit should read SAUL LOEB/AFP/Getty Images)
US President Donald Trump announces his nominee for Chairman of the Federal Reserve, Jerome Powell (L), in the Rose Garden of the White House in Washington, DC, November 2, 2017. / AFP PHOTO / SAUL LOEB (Photo credit should read SAUL LOEB/AFP/Getty Images)
Jerome Powell listens as US President Donald Trump announces Powell as nominee for Chairman of the Federal Reserve in the Rose Garden of the White House in Washington, DC, November 2, 2017. / AFP PHOTO / SAUL LOEB (Photo credit should read SAUL LOEB/AFP/Getty Images)
Jerome Powell listens as US President Donald Trump announces Powell as nominee for Chairman of the Federal Reserve in the Rose Garden of the White House in Washington, DC, November 2, 2017. / AFP PHOTO / SAUL LOEB (Photo credit should read SAUL LOEB/AFP/Getty Images)
U.S. President Donald Trump announces Jerome Powell as his nominee to become chairman of the U.S. Federal Reserve in the Rose Garden of the White House in Washington, U.S., November 2, 2017. REUTERS/Carlos Barria
US President Donald Trump announces his nominee for Chairman of the Federal Reserve, Jerome Powell, in the Rose Garden of the White House in Washington, DC, November 2, 2017. / AFP PHOTO / SAUL LOEB (Photo credit should read SAUL LOEB/AFP/Getty Images)
U.S. President Donald Trump, left, and Jerome Powell, governor of the U.S. Federal Reserve and Trump's nominee for chairman of the Federal Reserve, walk to a nomination announcement in the Rose Garden of the White House in Washington, D.C., U.S., on Thursday, Nov. 2, 2017. If approved by the Senate, the 64-year-old former Carlyle Group LP managing director and ex-Treasury undersecretary would succeed Janet Yellen. Photographer: Andrew Harrer/Bloomberg via Getty Images
Jerome Powell (R) speaks after being nominated for Chairman of the Federal Reserve by US President Donald Trump (L) in the Rose Garden of the White House in Washington, DC, November 2, 2017. / AFP PHOTO / SAUL LOEB (Photo credit should read SAUL LOEB/AFP/Getty Images)
US President Donald Trump announces his nominee for Chairman of the Federal Reserve, Jerome Powell, in the Rose Garden of the White House in Washington, DC, November 2, 2017. / AFP PHOTO / SAUL LOEB (Photo credit should read SAUL LOEB/AFP/Getty Images)
US President Donald Trump (L) signals the end of ceremony after announcing Jerome Powell (R) as nominee for Chairman of the Federal Reserve in the Rose Garden of the White House in Washington, DC, November 2, 2017. / AFP PHOTO / SAUL LOEB (Photo credit should read SAUL LOEB/AFP/Getty Images)
Jerome Powell (R) speaks after being nominated for Chairman of the Federal Reserve by US President Donald Trump (L) in the Rose Garden of the White House in Washington, DC, November 2, 2017. / AFP PHOTO / SAUL LOEB (Photo credit should read SAUL LOEB/AFP/Getty Images)
US President Donald Trump walks with Jerome Powell, his nominee to be Federal Reserve chairman, at the White House in Washington, DC, on November 2, 2017. / AFP PHOTO / NICHOLAS KAMM (Photo credit should read NICHOLAS KAMM/AFP/Getty Images)
US President Donald Trump walks with Jerome Powell, his nominee to be Federal Reserve chairman, at the White House in Washington, DC, on November 2, 2017. / AFP PHOTO / NICHOLAS KAMM (Photo credit should read NICHOLAS KAMM/AFP/Getty Images)
US President Donald Trump walks with Jerome Powell, his nominee to be Federal Reserve chairman, at the White House in Washington, DC, on November 2, 2017. / AFP PHOTO / NICHOLAS KAMM (Photo credit should read NICHOLAS KAMM/AFP/Getty Images)
Jerome Powell (R) leaves with US President Donald Trump leave after he was nominated for Chairman of the Federal Reserve in the Rose Garden of the White House in Washington, DC, November 2, 2017. / AFP PHOTO / SAUL LOEB (Photo credit should read SAUL LOEB/AFP/Getty Images)
US President Donald Trump shakes hands with his nominee for Chairman of the Federal Reserve, Jerome Powell (R), in the Rose Garden of the White House in Washington, DC, November 2, 2017. / AFP PHOTO / SAUL LOEB (Photo credit should read SAUL LOEB/AFP/Getty Images)
U.S. President Donald Trump arrives shakes hands with Jerome Powell, his nominee to become chairman of the U.S. Federal Reserve at the White House in Washington, U.S., November 2, 2017. REUTERS/Carlos Barria
U.S. President Donald Trump announces Jerome Powell as his nominee to become chairman of the U.S. Federal Reserve in the Rose Garden of the White House in Washington, U.S., November 2, 2017. REUTERS/Carlos Barria
U.S. President Donald Trump arrives in the Rose Garden to announce Jerome Powell as his nominee to become chairman of the U.S. Federal Reserve at the White House in Washington, U.S., November 2, 2017. REUTERS/Carlos Barria
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The dollar index, which weighs the greenback against a basket of six rival currencies, fell 0.3 percent to a low of 95.83 in the North American session ahead of trade talks between the United States and China, due this week, which investors hope will ease tensions between the world's two biggest economies.

Dealers cited speculation that the talks could set the stage for a summit between U.S. President Donald Trump and Chinese President Xi Jinping in November. Trade tensions have on the whole been a boon to the dollar, which benefits from geopolitical turmoil as the market seeks out less risky investments.

"The market is long dollars. There's some caution that this week's trade talks - U.S.-China and EU and Japanese officials will also be in town - could lead to some positive headlines. And if so, some of the dollar longs might get pressured," said Daniel Katzive, head of FX strategy North America at BNP Paribas in New York.

The dollar index hit a session low following a Reuters interview with Trump on Monday afternoon in which the president said that he would criticize the Fed if it continued to raise rates, that the central bank should be more accommodating and that he "should be given more help by the Fed."

The U.S. currency also weakened against the euro as investors unwound risk-off trades made earlier in the day. Concerns that the currency crisis in Turkey could hurt euro zone banks and uncertainty about the Italian government's planned budget had weighed on the euro.

"In the European session, emerging market tension had the dollar bid, and since then we've had a positive open. ... It's a risk-on session, and the dollar has come off accordingly," said Greg Anderson, global head of FX strategy at BMO Capital Markets in New York.

Against the U.S. currency, the euro strengthened 0.34 percent to a daily high of $1.148.

Traders are also preparing for the release of Federal Reserve policy meeting minutes on Wednesday and an annual Jackson Hole symposium for insights into the likely direction of U.S. monetary policy.

On Monday, the lira fell 1.5 percent, pushed lower after S&P Global and Moody's downgraded the country's sovereign credit rating further into junk territory. (Reporting by Kate Duguid and Tommy Wilkes; editing by Jonathan Oatis)

(Reporting by Jeff Mason, Steve Holland and James Oliphant Editing by Kevin Drawbaugh and Paul Simao)

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