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U.S.-E.U. Friction Grows Over Weakening Dollar

Published 2018-02-14, 11:21 a/m
Updated 2018-02-14, 11:21 a/m

Investing.com - The weakening U.S. dollar is causing friction between the European Union and the Trump administration.
There's growing concern in Europe that the U.S. is seeking a weaker dollar to make American goods more competitive abroad.
The concern comes even after President Trump said he wanted a strong dollar following controversial comments from Treasury Secretary Steve Mnuchin that a weaker dollar was good for the U.S.
The dollar is down about 3% against the euro this year, after a double-digit loss in 2017.
Concern has been voiced by European Central Bank council member Ewald Nowotny recently.
Nowotny, who also heads the Austrian central bank, said the U.S. is putting downward pressure on the dollar through its policies and wants to keep it low.
Analysts say the Trump administration's massive tax cut is forcing the government to issue more debt, which makes the dollar less attractive and thus depresses its value.
President Trump has also complained about the nation's huge trade deficits with major trading partners, such as China, Japan and Germany.

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