Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Read the excerpt below from the article Trump Wants a Strong US Dollar but Not Too Strong:Trade War Escalates' and answer the questions that follow

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Read the excerpt below from the article Trump Wants a Strong US Dollar but Not Too Strong:Trade War Escalates' and answer the questions that follow Trump Wants a Strong US Dollar but Not Too Strong; Trade War Escalates The dollar index (USDX) reached the one-year highs on Wednesday due to the demand for safe assets. USDX reached level 95.43 on Thursday, breaking the peak levels from November and May-June. However, Trump's comments have caused pressure on the American from the recently achieved highs. currency, throwing the dollar The U.S. president, in an interview on CNBC, noted that the yuan "was dropping like a rock", and the rising dollar and higher interest rates raise concerns about the potential impact on the economy. The strengthening of the currency makes the production of local companies comparatively expensive, which is able to slow growth. Trump, most likely, wants a strong US dollar. It represents the strength of the American economy. On the other, he also knows that a strong dollar puts the American economy at a disadvantage On Friday morning the yuan (CNY) sank to new lows compared to the last 13 months. Since the beginning of the month CNY lost 3%, and for three months of active sales, it sagged 9%. Chinese largest companies also remain under pressure on Friday morning, despite the weakness of the national currency, which often supports stocks. Read the excerpt below from the article Trump Wants a Strong US Dollar but Not Too Strong:Trade War Escalates' and answer the questions that follow Trump Wants a Strong US Dollar but Not Too Strong; Trade War Escalates The dollar index (USDX) reached the one-year highs on Wednesday due to the demand for safe assets. USDX reached level 95.43 on Thursday, breaking the peak levels from November and May-June. However, Trump's comments have caused pressure on the American from the recently achieved highs. currency, throwing the dollar The U.S. president, in an interview on CNBC, noted that the yuan "was dropping like a rock", and the rising dollar and higher interest rates raise concerns about the potential impact on the economy. The strengthening of the currency makes the production of local companies comparatively expensive, which is able to slow growth. Trump, most likely, wants a strong US dollar. It represents the strength of the American economy. On the other, he also knows that a strong dollar puts the American economy at a disadvantage On Friday morning the yuan (CNY) sank to new lows compared to the last 13 months. Since the beginning of the month CNY lost 3%, and for three months of active sales, it sagged 9%. Chinese largest companies also remain under pressure on Friday morning, despite the weakness of the national currency, which often supports stocks

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Renewable Energy Finance Funding The Future Of Energy

Authors: Charles W Donovan

2nd Edition

1786348594, 9781786348593

More Books

Students also viewed these Finance questions