Trump says he likes a strong dollar, but a weaker one is ‘good for inflation’

U.S. President Donald Trump said on Friday he liked a strong dollar but “you make a hell of a lot more money” with a weaker one.

“So when we have a strong dollar, one thing happens: It sounds good. But you don’t do any tourism. You can’t sell tractors, you can’t sell trucks, you can’t sell anything,” Trump said at the White House before leaving on a trip to Scotland.

“It is good for inflation, that’s about it.”

The dollar index, which measures the greenback’s strength against six major currencies, steadied on Friday after hitting two-week lows earlier in the week. It is still down roughly 10% over the six months Trump has been in office.

Trump has often complained that dollar strength blunts U.S. export competitiveness and hurts U.S. manufacturing and jobs.

Trump told reporters on Friday that manufacturers would be the first to benefit from a falling dollar, citing construction and mining equipment maker Caterpillar, whose shares have risen 16% over the last month.

Japan and China fought for weaker currencies for decades and were able to dominate markets over the years, Trump said.

“Now it doesn’t sound good, but you make a hell of a lot more money with a weaker dollar – not a weak dollar but a weaker dollar – than you do with a strong dollar,” he said.

At the same time, he acknowledged that pushing for a weaker dollar wasn’t a good look, saying a strong dollar is good psychologically.

“It makes you feel good,” he said. “I love strong dollars.”

—Steve Holland and Maiya Keidan, Reuters