Dollar plunges after Trump, Navarro signal push to weaken greenback

[DonViejo]

Source: Reuters



Tue Jan 31, 2017 | 11:06am EST

By Sam Forgione | NEW YORK

The U.S. dollar tumbled against key rivals on Tuesday and was on course for its worst month since March after U.S. President Donald Trump commented on currency devaluation by other countries and his trade adviser remarked on the euro.

Trump, in a meeting with the chief executives of several top drugmakers on Tuesday, said drug companies had outsourced production because of currency devaluation by other countries.

The comments intensified expectations that the new U.S. administration was making moves to talk down the greenback just hours after Trump's top trade adviser, Peter Navarro, told the Financial Times that Germany is using a "grossly undervalued" euro to gain advantage over the United States and its own European Union partners. "Markets are just continuing to react to rhetoric from President Trump and others in the administration pushing back against the strength in the dollar," said Vassili Serebriakov, a currency strategist at Credit Agricole in New York.

The dollar plunged by nearly 1.5 percent against the Japanese yen after the comments, hitting its lowest since Nov. 30 of 112.07 yen JPY=. The euro gained 1 percent against the dollar to $1.0801, its highest since Dec. 8.

Read more: http://www.reuters.com/article/us-global-forex-idUSKBN15F013

[enough]

1. Trump says he wants a weaker dollar, so he must be happy.

Quote from article linked in OP:

Trump said in an interview with the Wall Street Journal earlier this month that he thought the dollar was too strong and "it's killing us."

[Javaman]

2. Yay! inflation!

we will look at this point in time as the "good times"

start a garden now, if you already haven't.

[Cicada]

5. Weaker dollar would be great

Inflation will rise making those in debt owe less in real terms. That would help those who need help and give them more buying power to spur economic growth. And US made goods would cost less abroad, again helping our economy. But sadly other Trump proposals would strengthen the dollar, such as tariffs on goods sold to the US. If we buy fewer foreign goods then the supply of dollars in other countries will decrease. That lower supply of dollars abroad will make them cost more - strengthening the dollar. So Trump has a good idea but his bad ideas will screw it up.

[barbtries]

3. i'm really torn

between spending money and hoarding money...back in the days of hitler inflation got so bad they had to take money in a wheelbarrow to buy a loaf of bread (reaching far back to - I think - "The Third Reich" for that tidbit).

if i spend the money at least i may have something worthwhile to barter with if and when.

it's this uncertainty of not knowing where this ends, not even for the planet itself let alone the life upon it.

[NewJeffCT]

4. He's going to make America and the dollar so cheap

that 3rd world countries will move their manufacturing here.