Former US President, Donald Trump in his manifesto said he wants to weaken the current position of the US dollar currency in the financial market.
His position is due to the feedback of foreign manufacturers who are not interested in importing United States products due to the high and expensive currency position.
In addition, there are some foreign countries trying to maintain the value of the currency at a weak position in order to gain high traction in export trade activities. Trump became aware of the economic turmoil after assessing the level of the Japanese yen and the Chinese Yuan.
During his first term as US President, Trump often criticized other countries for maintaining weaker rates against the US dollar and he often urged the Fed to ease monetary policy.
In this election, he now stands more regularly that a high position greatly risks the country's trade industry.
Recently, United States Senator Vance challenged Fed chairman Jerome Powell to explain how the US people benefit from being the main user of the world's giant currency.
His statement also attracted the push towards the dollar policy by Trump to gain more support ahead of the Presidential election.
However, leading banking firms such as Morgan Stanley and Deutsche Bank AG predict that Trump's victory will most likely increase the value of the US dollar.
This effort recalls the history of the Plaza Accord of 1985, when the US government got the support of the UK, Germany, France and Japan to jointly use their currencies to devalue the USD.
In 2024, such actions will not bear fruit due to the significant and steeper price position.
The global foreign exchange market is so much bigger now that the USD is harder to push back given its current trajectory.
