WASHINGTON: The management style of US President Donald Trump is negatively affecting the exchange rate of the US dollar and could undermi...
WASHINGTON: The management style of US President Donald Trump is negatively affecting the exchange rate of the US dollar and could undermine the fight against inflation in the country, The Washington Post (WP) wrote.
According to the article, the dollar has lost over 10% of its value since Trump’s return to office in January last year. "I think the dollar will fall around 10% [more] this year," economist Robin Brooks, a senior fellow at the Brookings Institution, who previously worked at the International Monetary Fund, told WP. "There is a visceral dislike of this kind of policy chaos [among investors]," he noted.
The newspaper stressed that "perhaps the key to the dollar’s drop is the ripple effect of the [US] president [Donald Trump]'s erratic policymaking, including abrupt stops and starts with tariffs and military action against a lengthening list of countries." "Many foreign investment managers are exhausted," the publication stated. According to WP, "the broader trend of dollar weakness remains in place." Even if foreign investors are not rushing to abandon the dollar, they "did become less confident in it," the newspaper wrote.
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