Strong dollar sounds good but ‘you make a hell of a lot more’ with a weaker one, says Trump
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The dollar index steadied on July 25 after hitting two-week lows earlier in the week.
PHOTO: BLOOMBERG
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- Trump stated a weaker dollar helps US exports, despite liking a strong dollar. He noted benefits for manufacturers like Caterpillar.
- The dollar index steadied after hitting two-week lows. It's down about 10% during Trump's presidency.
- Trump said Japan and China benefitted from weaker currencies. He acknowledged a weaker dollar's bad image, while liking the psychological effect of a strong one.
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WASHINGTON - US President Donald Trump said on July 25 he liked a strong dollar but “you make a hell of a lot more money” with a weaker one.
“So when we have a strong dollar, one thing happens: It sounds good. But you don’t do any tourism. You can’t sell tractors, you can’t sell trucks, you can’t sell anything,” Mr Trump said at the White House before leaving on a trip to Scotland.
“It is good for inflation, that’s about it.”
The dollar index, which measures the greenback’s strength against six major currencies, steadied on July 25 after hitting two-week lows earlier in the week.
It is still down roughly 10 per cent over the six months Mr Trump has been in office.
Mr Trump has often complained that dollar strength blunts US export competitiveness and hurts US manufacturing and jobs.
Mr Trump told reporters on July 25 that manufacturers would be the first to benefit from a falling dollar, citing construction and mining equipment maker Caterpillar, whose shares have risen 16 per cent over the last month.
Japan and China fought for weaker currencies for decades and were able to dominate markets over the years, Mr Trump said.
“Now it doesn’t sound good, but you make a hell of a lot more money with a weaker dollar - not a weak dollar but a weaker dollar - than you do with a strong dollar,” he said.
At the same time he acknowledged that pushing for a weaker dollar wasn’t a good look, saying a strong dollar is good psychologically.
“It makes you feel good,” he said. “I love strong dollars.” REUTERS
