Annika Alexius on the weak dollar in Dagens Nyheter
The dollar is plummeting in value and reached its lowest level in three years in mid-April. This benefits US exports, according to Annika Alexius, professor of economics at Stockholm University.
Photo: Mostphotos/Michael Erhardsson
In an interview with Swedish newspaper Dagens Nyheter about US trade policy, Annika Alexius explains why the declining value of the dollar could be advantageous for US exports:
”A low-valued currency means your products become cheaper on the world market. If you want to increase American exports, as Trump does, then a weaker dollar is beneficial,” she says.
However, high interest rates, a weak stock market, and a declining currency indicate poor economic policy, according to Alexius. She doesn’t believe this is a deliberate strategy by the Trump administration, since exchange rates are driven by the market and are nearly impossible to control.
Alexius also points out in Dagens Nyheter that the dollar is still a strong currency:
”The fact that it’s at its weakest in three years means very little. You have to assess the value of currencies over the long term. From that perspective, the US dollar is still strong.”
