For revitalizing the US economy, Trump takes credit, even when he was not in office for 100 days.
But the president’s promises to the world’s biggest markets may come with an unwelcome corollary as a rising dollar may threaten Trump’s campaign promises.
In an interview to Wall Street Journal, Trump acknowledged, “I think our dollar is getting too strong and partially that’s my fault because people have confidence in me,” he said. “That will hurt ultimately.”
Economy is in increasingly good health and Wall Street has hit successive records that were boosted by president’s promises of cutting taxes, spending on infrastructure and slashing regulations. Because of this, investors have pumped cash into American equities that resulted in driving up a dollar. Dollar is up by 6% against a basket of 6 major currencies of the world.
Barry Bosworth, a senior fellow at the Brookings Institution, said, “The dollar is high because the US economy is a stronger performer right now than any other advanced economy.”
A strong dollar policy is strictly defended by U.S. since mid-1990s, saying for a robust, attractive economy, dollar stood strong.
On the other hand, to dull the effect of rising dollar Trump’s only hope is to use import duties to make foreign goods less competitive.