Trump called the dollar's situation "excellent" and sees no problem in weakening it

US President Donald Trump on Tuesday expressed confidence in the current position of the US currency, saying that, in his opinion, the dollar has not weakened too much. He described the situation as "excellent" and stressed that he was not concerned about the recent depreciation.

Speaking to reporters, Trump noted that the dollar "strives for its fair level." This statement was made against the background of a period when the US currency showed a decline against a basket of major world currencies, which caused certain concerns in the financial markets. However, according to the president, the current dynamics are natural and do not require intervention.

During his speech, Trump also touched upon the topic of international monetary policy, again pointing to the actions of other countries. He said that economic powers such as China and Japan "have always sought to devalue their currencies" in order to gain a competitive advantage in global trade. Similar accusations of currency manipulation have been repeatedly made by the American leader throughout his presidential term.

Comparing exchange rate fluctuations to a popular toy, Trump added that the value of the dollar can move "up and down like a yo-yo," implying that volatility is a normal part of market processes.

Context and analysis

President Trump's statements often run counter to the traditional position of American administrations, which have historically advocated a "strong dollar." A strong currency is usually seen as a sign of a healthy economy that attracts foreign investment.

However, the Trump administration has repeatedly made it clear that a weaker dollar can be beneficial for the American economy, as it makes U.S. exports cheaper and more competitive on the global market. This, in turn, can help reduce the trade deficit, which is one of the key goals of Trump's economic policy.

The president's comments are likely to be closely analyzed by investors and central banks around the world. Although verbal interventions do not always lead to immediate changes in the market, they set the tone for expectations and can affect long-term currency trends. At the moment, the White House's position is clear: the current weakening of the dollar is not only not alarming, but is also seen as a positive phenomenon on the way to a "fair" exchange rate.

The reaction of the markets to the president's words was relatively restrained, as the bidders were already accustomed to his unorthodox statements on economic issues. Nevertheless, his words serve as another confirmation that the White House is ready to put up with the weakening of the national currency and even encourage it if it helps achieve its trade goals.

Economists and analysts, in turn, have different opinions. Some agree that the dollar has been overvalued, and its correction is a healthy process that will help balance global trade. Others warn that deliberately weakening the currency or even simply approving this process could trigger "currency wars" when countries compete to devalue their currencies to gain trade advantages. Such a scenario could lead to global economic instability and undermine confidence in the international financial system.

In addition, a weaker dollar has a downside for American consumers and companies. It makes imported goods and raw materials more expensive, which can lead to higher inflation. American tourists traveling abroad will also experience a decrease in their purchasing power.

Thus, Trump's statement once again underscores his departure from traditional economic doctrine and his willingness to use all available levers, including rhetoric, to advance his "America First" agenda. So far, the administration sees the weakening of the dollar as a tactical advantage, but the long-term consequences of such a policy remain the subject of intense debate among experts around the world.