Trump Wants a Weak Currency. Rivals Do Too, and That’s a Problem
- Fed rate cuts may not weaken dollar amid global dovishness
- Any intervention could face strong countermeasures by rivals
Despite the Fed’s increasing dovishness, the greenback has beaten most Group-of-10 peers this quarter.
Photographer: Paul Yeung/BloombergThis article is for subscribers only.
Major economies around the globe all seem to covet a weaker currency as risks to growth mount. That makes engineering a lower dollar, euro or other heavyweight all the harder.
President Donald Trump has repeatedly badgered the Federal Reserve to cut rates and complained that the U.S. dollar is too strong. But he’s got competition. It might not mention the exchange rate explicitly, but the European Central Bank is poised to loosen policy, weighing on the common currency.