Hogwash. Hot air.
That's what Willem Buiter, chief economist at Citigroup, makes of the Trump administration's comments on exchange rates.
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Trump: It's going to be America first again
US President Donald Trump discusses trade, taxes, financial reform and infrastructure at a Republican congressional retreat in Philadelphia.
The world's largest foreign-exchange trading firm sees the dollar rising this year even as the president talks the greenback down and blasts some of the nation's biggest trading partners for currency manipulation.
"This is all basically hogwash," Buiter said in an interview, referring to Trump's criticism of China and Japan on their exchange rates. "All this currency-manipulator talk is, I think, basically hot air."
In recent weeks, Trump and administration officials have complained that the dollar is too strong, while accusing major trading partners - China, Japan and Germany - of weakening their currencies to gain trading advantages.
That's muddied the outlook for the greenback, which fell the past six weeks and has given back more than half of its gains since the developer and reality-TV star's election victory in November.
The bank forecasts the greenback will strengthen to 124 yen and beyond parity with the euro by the end of the year. The dollar rose 1.2 per cent to 113.24 yen and was up 0.4 per cent at $US1.0659 per euro. The Aussie dollar fell 0.3 per cent to $US76.23¢.Â
"You cannot have anticipated fiscal expansion and anticipated monetary tightening while the rest of the world, by and large, is in a monetary loosening mode still and expect your currency to weaken."
Bloomberg
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