This situation is further complicated by the fact that currency strength reflects weakness in other markets. in 2023 at the end of the year, the American economy was 8 percent. higher than in 2019 at the end The economies of the United Kingdom, France, Germany and Japan grew by less than 2 percent over the same period. The yen has hit a 34-year low against the US dollar. The euro has fallen from $1.10 at the beginning of the year to $1.07. Some traders are now betting that the pair will reach parity by early next year.
Therefore, if Donald Trump wins the election in November, the stage will be set for a fight. A strong dollar typically raises the price of American exports and lowers the price of imports, while widening the country’s persistent trade deficit, a bane that has dogged Trump for decades. Robert Lighthizer, the architect of tariffs on China during Trump’s tenure in the White House, is seeking to weaken the dollar, Politico news site reports. US President Joe Biden has not spoken publicly on the currency issue, but the strong dollar also complicates his industrial program agenda.
