FX.co ★ US dollar dips lower amid Trump’s indecisive actions

At the time being, Donald Trump poses a major risk to the US dollar. The President’s decisions, especially the ones which concern the economic policy, contribute to the greenback’s fall. This is the only explanation offered by many experts as they think that there are no other reasons for the dollar’s downtrend.

The outlook for the US economic growth this year is quite optimistic. The unemployment level decreased to the record low of 4.4%. Moreover, the Federal Reserve hiked the interest rate two times in the past six months. However, this consistent picture is spoiled by Trump’s indecisive actions. His ambitious promises to carry out economic reforms failed to come true. During his election campaign, Mr Trump pledged his voters to increase infrastructure spending, conduct revolutionary tax reforms, and lower trade deficit. In fact, the new US President is in no hurry to introduce his economic initiatives though over 100 days have passed since he took office. Natalia Orlova, the head of the macroeconomic analysis department at Alfa Bank, said that any attempts to control the trade deficit in the US may dent the economic growth and investments. Moreover, if the budget initiatives are implemented, the current account deficit may widen even more, she added.

Many forex analysts expect the US dollar to continue declining. Currently, the American currency is suffering losses due to the unwise economic policy suggested by Donald Trump.