Dollar vs Rupee / How will the falling dollar and strengthening rupee benefit Trump and USA?

Dollar vs Rupee: Donald Trump's policies have always been focused on strengthening American trade and economic influence. When he first became president in 2017, he raised questions about the strength of the US dollar. Now, in his second term, the dollar is continuously weakening, and this can become an important part of Trump's economic strategy.

Dollar weakness: A profitable deal for Trump?

Trump believes that the strong dollar is a major reason for the US trade deficit. A strong dollar makes American goods expensive, reducing the demand for American products and making imports cheaper. As a result, American companies shift production abroad, increasing unemployment. Trump's policy may focus on correcting this imbalance.

US trade deficit and manufacturing

For the fourth consecutive year in 2024, the US trade deficit was more than a trillion dollars, indicating that production in the country is declining and the US is becoming more dependent on imports. Although the unemployment rate remains low, Trump's priority is to promote domestic manufacturing and make America a hub of production.

Global influence of the dollar

The US dollar remains the most influential currency in the world, and most international trade takes place in it. 60% of the world's total foreign exchange reserves are in dollars. However, Trump may try to change this balance of power, which will benefit US exporters but may affect the global economy.

Will Trump devalue the dollar?

If Trump adopts a strategy like the 'Mar-a-Lago deal', he can put pressure on global trading partners to reduce the value of the dollar. This will make US exports cheaper and reduce the trade deficit. However, a weak dollar can lead to inflation and instability in the global market.