Source: Jeff Yoders/MetalMier
“Threats of a trade war intensified over the weekend, as President-elect Donald Trump said the U.S. dollar ‘is too strong,’ wrote Investors Business Daily recently.
Trump, who will be president in one more day, also “warned BMW that it will face a 35% tariff on imports to the U.S. from a plant it’s building in Mexico,” according to IBD. In addition, Trump specifically called out China and its weakening currency, stating that U.S. companies can’t compete with China because the dollar is too strong.
Dollar Index Falls to a 1-Month Low
All of this helped lower the U.S. dollar index by 1% against the world’s other major currencies, falling to its lowest level in a month. Previous administrations have maintained a steady policy of backing a strong dollar and, according to The Industry Spread, “presidents have tended to refrain from commenting on the currency altogether.”