What is trump doing to the u. s. dollar_ _ daily wire


On Monday, president-elect Donald Trump told The Wall Street Journal that the U.S. Euro to aud forecast dollar was “too strong,” precipitating a plunge in the dollar to its lowest level in a month. Futures markets quotes Trump stated, “Our companies can’t compete with [China] now because our currency is too strong. Hkd to usd conversion And it’s killing us.”

Trump is breaking with the tradition of leaving commentary about the U.S. Eur usd history currency to the Treasury Department, which usually states that it favors a stronger dollar. Gbp to usd calculator Previous presidents have preferred a stronger dollar because it holds down interest rates and inflation while keeping U.S. Euro to usd history buying power strong.

After Trump’s election, the dollar surged to its highest level in 14 years, but now the index has plunged half of the distance back to where it was before the election. Mxn to usd converter The Journal reported, “Government bonds strengthened and the S&P 500 financials sector slid 2.3%, its worst day in nearly seven months despite Morgan Stanley posting its best fourth-quarter results since the financial crisis. Msn news page Gold was up 1.4%, underscoring rising investor anxiety . . . Usd to zambian kwacha Speculative investors were holding about $26 billion in bets on a rising dollar as of Jan. Usd to vnd chart 10, according to Commodity Futures Trading Commission data, near the highest level in a year.”

Brad Bechtel, a foreign-exchange strategist at Jefferies Group, told the Journal that Trump’s statements have “raised the level of confusion on what policies we’re going to get.” David Kotok, chief investment officer at Cumberland Advisors, a money manager with $2.4 billion in assets, echoed, “If this is random or haphazard behavior, without a grand plan, we are headed for some shocks.”

The Journal explained, “Mr. Exchange rate euro dollar today Trump’s options for pushing the dollar down are limited. Dollar indian rupee exchange rate The major drivers of the exchange rate are differences in economic growth and investment prospects, which are largely out of his control. Currency converter us dollars to pounds Central-bank policy is also a driver, and the Federal Reserve has been raising interest rates of late, which tends to push the value of a currency up.”

The advantage of a weaker dollar is that some U.S. Binary code alphabet companies would boost their earnings in foreign countries, since the currency could compete better abroad. Binary code converter But the disadvantage of a falling dollar is that contributes to rising inflation because imports would become cheaper, thus triggering a plunge in commodity prices and making the repayment of debt costlier with other nations.

Here are some reasons why a weak dollar is not good for America, as adumbrated in Forbes in 2007: A weaker dollar means the real spending power of American consumers is reduced, meaning a reduction in real income; it weakens the role of the U.S. Usd stock dollar as the world’s reserve currency; it is unlikely to reduce America’s trade deficit since much of the current balance is denominated in U.S. Usd cad exchange rate chart dollars; it is inflationary because it increases the cost of imports; it inflicts damage to the American brand name, and finally, it encourages American and international investors to invest in non-American markets.