Make America Great Again and the US Dollar as Small as Possible

[AndreasHG]

In articles published by the Financial Times and other financial publications, authors highlight how the US Dollar just had its worst week "since President Donald Trump’s “liberation day” tariffs announcement rocked markets at the beginning of April."

 

In the five days ending yesterday the US dollar lost over 2% of its value, 0.9 per cent on Friday alone, against a basket of peers including the euro, the yen and, crucially for our American friends living in Thailand, against the THB.

 

This should not come as a surprise. Given the current administration fixation with the trade imbalance, and the tools available to rectify it, the safest way to achieve tangible results is to reduce the spending power of the American people. And what better way to reduce imports and boost exports if not the depreciation of the US dollar?

 

As I posted before, the first Trump term saw the US Dollar lose a staggering 13 to 15% of its value against major currencies and a staggering 20% against the THB.

But this second term is different because the decline in the value of the US dollar is happening faster and more dramatically than ever before.

 

"“Lingering fears over the quality of US asset markets and the threat of de-dollarisation are continuing to weigh on the dollar,” said Chris Turner, global head of markets research at ING", writes the Financial Times.

 

And "“Renewed investor concerns over the US fiscal outlook, alongside speculation that the Trump administration is seeking to weaken the dollar in discussions with other countries, have contributed to the sell-off,” said Lee Hardman, senior currency analyst at banking group MUFG.".

 

Concluding by writing "Analysts at RBC BlueBay Asset Management said they expected the dollar weakening to continue as investors look to hedge their exposure to the greenback in the short term and rethink a “structural overallocation” to the US in the longer term."

 

And while our American friends in Thailand prepare for a future of belt-tightening, there’s bad news for our Americans friends back home too. With 20- and 30-year treasuries interest rate exceeding the 5% mark for the first time in 18 years and with a total value of outstanding US Treasury securities of $27.089 trillion, a 0.1% change in the interest rate costs the American taxpayers a staggering $27.1 billion. 

 

Soon however, Americans will start assembling the popular iPhones locally and, who knows, maybe exports to Thailand, China and Vietnam will start too.

Everything, in order to Make America Great Again. 

 

Dollar notches biggest weekly drop since tariffs sell-off over US debt fears (https://www.ft.com/content/04deb2ec-5bb1-4c7c-94bb-6f62582a0032).

[FlorC]

Not that dramatic :

 

 

 

[blaze master]

34 minutes ago, FlorC said:

Not that dramatic :

 

 

 

 

Hahaha I notice the other graph ...which is a much shorter time frame.....starts right when it peaked. Yet no mention of a few months before that when it wasn't much different than now. Nor does it show the drop in the months  leading up to it.