Adviser to trump denies the possibility of currency interventions
The administration of the President of the United States “eliminated” intervention in markets to the depreciation of the U.S. dollar, although the President, Donald trump is concerned about the currency manipulations of other countries to receive trade benefits, said the chief adviser to the White house.
He said, “just last week we had a meeting with the President and economic leaders, during which we have ruled out any currency intervention”. The official of presidential administration Peter Navarro, a supporter of tough trade, presented Tuesday to Trump’s ideas about the decline of the dollar as a way to exert pressure on China in an ongoing trade fight.
However, the President quickly rejected the proposal.
Trump publicly complained about the strength of the dollar, claiming that it harms the competitiveness of America, but Kudlow challenged the assertion that the President wanted to weaken the dollar. Rather, according to him, the other currency should be stronger.
“The President is concerned that some countries can specifically reduce the rate of national currencies, trying to obtain some short-term, temporary trade advantage.”
Later on Friday Kudlow told reporters that the President needs a stable dollar. Trump, in his remarks for journalists, suggested that he welcomes a stronger dollar, because it is a symbol of a strong economy, though, and restrains US exports.
“The dollar is very strong. The country is very strong,” he said.
“It’s a beautiful thing with one hand, but it makes it difficult to compete.” “We have a very strong dollar … It has indeed become, as never before, the currency of choice,” trump added, referring to the weakness of the Euro. He also said that the Chinese Renminbi was “very low”. Trump unhappy with the policies of the fed concerning interest rates of the dollar and urged the Central Bank to cut rates at its two-day meeting next week.
“The Federal reserve raised rates too fast and too early,” lamented trump on Friday.
The Central Bank raised interest rates before the end of last year, and a significant gap between borrowing costs in the US and the costs in other developed countries is seen as a factor contributing to the strengthening of the dollar. But, partly in response to what he considers obstacles in trade policy trump is now expected that the fed will cut rates for the first time in more than a decade.
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The Company FXOpen