- REUTERS/Yuri Gripas
President Donald Trump said the dollar “is getting too strong,” repeating his opinion that the currency’s gain makes American products less competitive globally.
“I think our dollar is getting too strong, and partially that’s my fault because people have confidence in me,” Trump told The Wall Street Journal in an interview published on Wednesday. The dollar jumped to a 13-year high after the November election but has since given back some of the gains.
Trump added that the strong dollar would “hurt ultimately.”
In 2015, the strong dollar dealt a blow to US manufacturers when it surged as investors expected interest rates to rise. Although it’s bad for exporters, a stronger dollar cheapens foreign products for Americans.
Trump also told the WSJ that the US won’t label China a currency manipulator. During his campaign, Trump had promised he would do so on day one of his presidency. He said he made the reversal because China stopped devaluing its currency, and the label would hurt efforts to work with Beijing on dealing with North Korea.
The US dollar index, which measures it against a basket of other major currencies, slid on Trump’s remarks about its strength. It is down 0.35% at 100.28 as at 3:20 p.m. ET.
- Markets Insider