The foreign exchange market may have reason to pay even more attention to the US elections next November.
Last night, a Politico report revealed that Trump’s former trade adviser Robert Lighthizer and several political allies would seek to make U.S. trade more competitive by deliberately weakening the dollar.
Yesterday, Trump also posted this on his social media platform.
The dollar has just reached its highest level in 34 years against the yen, a total disaster for the United States. When I was president, I spent a lot of time telling Japan and China, in particular, that you can’t do this. This sounds good to stupid people, but it is a disaster for our manufacturers and others. They are in reality unable to compete and will be forced either to lose a lot of contracts, or to build factories, or something else, in “smart” countries. This is what made Japan and China giants years ago. I placed limits on both (and others!), and if they violated those limits, there was hell to pay. Biden gave up. Now watch them take apart the United States. It will be an open day. Don’t let this happen, Joe Crooked. Wake up and smell the roses!
It is unclear how the Trump administration would attempt to weaken the dollar. He seems to think that Japan is trying to weaken its currency when it is trying to strengthen it.
cnbctv18-forexlive
