The sudden appreciation of the Taiwan Dollars recently has sparked much debate about the value of the US dollar. Is it still the world number 1 currency ?
Could this be Trump's strategy ?
If US dollar weakens, that makes the Asian countries currencies stronger which is what he wants. This will help in US imports as importers in Asia will use less of their own currency to buy the same US dollar goods. This of course boost US exports which is what Trump wants.......
Also, with a stronger Asian currency, people are more likely to travel (think SGDJPY when it was 1 SGD to 120 JPY in July 2024. That was the peak and thousands of Singaporeans flock to Japan and buy , shop , eat , OMG !!!!
Not to forget there are many Asian students studying in US universities and that will prompt parents to exchange more US dollars and perhaps upgrade to a better accommodation for their kids.
Some say Trump is mad and not smart , what do you think ?
Could this be Trump's strategy ?
If US dollar weakens, that makes the Asian countries currencies stronger which is what he wants. This will help in US imports as importers in Asia will use less of their own currency to buy the same US dollar goods. This of course boost US exports which is what Trump wants.......
Also, with a stronger Asian currency, people are more likely to travel (think SGDJPY when it was 1 SGD to 120 JPY in July 2024. That was the peak and thousands of Singaporeans flock to Japan and buy , shop , eat , OMG !!!!
Not to forget there are many Asian students studying in US universities and that will prompt parents to exchange more US dollars and perhaps upgrade to a better accommodation for their kids.
Some say Trump is mad and not smart , what do you think ?
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.