Why is the start of the dollar to a weak start this year?

The policies of President Donald Trump are hurry to weaken the US dollar, which will become its worst start in half a century, according to Harvard University economics, Kenneth Roger.

"I don’t think there is any question that Donald Trump is an incentive and may go further with what he is doing," Roger Michel Martin told NPR.

The dollar has decreased by 10.8 % since the first half of this year, according to the US dollar index, which compares the US currency and a basket of other global currencies such as the yen and the euro. It makes the decline more expensive for Americans who travel abroad and increases the cost of imports.

"The dollar was talking about the global economy this year. Everyone is concerned about that," The former chief economist of the previous International Monetary Fund said in Morning edition. "They are talking about the fact that the dollar may not be used as much. They are concerned about the US budget deficit and what will happen. They are concerned about Trump’s suspension from the markets, making it also less attractive to all dollars."

Roger said that the dollar has not weakened this much since President Richard Nixon canceled the ability to turn the dollar into gold in the seventies.

This interview was released for length and clarity.

Michelle Martin: Why is the dollar very weak now?

Kenneth Rojov: Well, the dollar was very high per year. I would like to say that you had to return to 25 years to see her high. This is part of it. But I don’t think there is any question that Donald Trump is an incentive and may go further with what he is doing. Commercial wars, which threaten to put taxes on foreign investment, which makes it look like investing in the United States is not as safe as it was.

Martin: Is it more than fluctuations, or are they the same policies, or a mixture of them?

Rooff: I will be honest with you, we don’t know. It is very difficult to analyze exchange rates after the truth. But we somewhat note when Trump attacks the Fed Banking Bank, which falls the dollar. And when it does some of the tariff policy, the dollar decreases. So there is no doubt that you can connect the rhythm of what is happening to Trump

Martin: Could the tax and spending bill for the president have an impact?

Rooff: definitely. The dollar was the property of the hill for a long time. But at the same time, our debt policy is off bars. I mean that religion is about to pass the post -World War second record as a percentage of income. There is no plan. As you know, Trump only says, “Oh, there is no concern.

Martin: Who benefits from a strong US dollar? Is there any person who benefits from the weakest US dollar?

Rooff: Well, we benefit if you are a source. When the dollar becomes weaker, imports are more expensive, but our exports are cheaper. There are some exports such as services, which are actually one of our biggest exports – it is insurance, consulting, financing, and intellectual property – the price in dollars, and we will become more competitive than it could have been otherwise. On the contrary, if you are a worker on the farm and you are sending remittances to your parents, for example, Mexico or some foreign country, it will be less valuable when the dollar decreases.

Martin: So where you stand, in some way, it depends on where you sit. But I also think I hear it says that in some respects, the dollar is a referendum on how investors see the total power and power of the American economy. Is this accurate?

Rooff: It is certainly correct that the amount of what they want to keep the dollar and at any price is a referendum. It has always been talking about the global economy this year. We may ever look at a turning point in the global economy and economic history. We have not seen anything like this since 1971, when we took off Nixon from gold. People were unable to trade their dollars in gold, but the two countries could. Nixon announced that we will not do it anymore, and was followed by the seventies. It was a disaster. This is the biggest thing, really, in more than 50 years. This is a very big deal.

The broadcast version of this story was released HJ Mi. The digital version was edited by Olivia Hampton.

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