US President Donald Trump gave confusing signals regarding dollar policy in his statements.
While Trump stated that he was in favor of a strong dollar, saying, “I would never support a weak dollar,” he also talked about the economic advantages that a low exchange rate provides to the US manufacturing industry.
“I would never say I like low exchange rates. I'm someone who likes a strong dollar. But a weak dollar can make you more money,” Trump said. These statements came at a time when markets were speculating that he was actively supporting his administration's weak dollar policy.
Asked if he was concerned about the US dollar's continued decline, Trump replied, “I like a strong dollar,” then quickly added, “But I don't lose sleep over it.” The president also specifically noted that the manufacturing sector benefits from a weak dollar.
Trump said, “A strong dollar has its consequences. It looks good from the outside, but no one comes to travel. You can't sell factories, trucks, or anything. A strong dollar is only good for controlling inflation, that's all. We don't have inflation anyway; we've completely eliminated it.”
*This is not investment advice.
