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Trump’s tricky dollar problem

The president-elect might want a weaker US currency but market forces are pushing in the other direction

We will soon find out whether Donald Trump has changed his tune on the dollar.

In his first term, the comeback president had a clear preference for a weaker buck. On one notable occasion in 2019, when European Central Bank chief Mario Draghi was dropping hints of more monetary stimulus, the then-president responded with his trademark poise, tweeting that Draghi’s comments “immediately dropped the Euro against the Dollar, making it unfairly easier for them to compete against the USA. They have been getting away with this for years, along with China and others.” 

Trump’s foray in to dollar policy — traditionally the preserve of the Treasury secretary — prompted that immediate drop in the euro to reverse and left the market in no doubt what the leader of the free world wanted to see.

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