Why it is folly for the US to weaken the dollar

Currency manipulation for a temporary boost to exports and jobs will set off a destructive wave of competitive devaluations and destroy trust in US financial leadership

Democratic Senator Elizabeth Warren's "economic patriotism" differs in style and content from US President Donald Trump's economic nationalism, but they have found common cause in vows to weaken the dollar. That is a strangely self-defeating agenda for patriots or nationalists of any political fashion.

Mr Trump and Ms Warren argue that China and other emerging rivals weaken their currencies to promote exports and gain jobs, so why shouldn't America follow a similar policy?

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A version of this article appeared in the print edition of The Straits Times on June 26, 2019, with the headline 'Why it is folly for the US to weaken the dollar'. Print Edition | Subscribe