MANAGE SUBSCRIPTIONS | UNSUBSCRIBE | VIEW ONLINE The dollar just had its worst quarter in years, and that's exactly what Trump wants
President Donald Trump is getting what he said he wanted from the dollar.
"I think our dollar is getting too strong, and partially that’s my fault because people have confidence in me," Trump said in April. It wasn't the first time he suggested that a softer dollar would make America's exports more competitive.
The greenback rocketed to a 14-year high in December alongside other assets that rallied on expectations from the new administration's policies.
In the second quarter, it gave back gains as some currency strategists had expected it would. The US dollar index, which measures the greenback against a basket of other foreign currencies, on Friday was on track to end the second quarter with a 4.6% drop — the worst quarterly decline since third-quarter 2010.
"The initial profit-taking at the start of the year turned into a rout," said Marc Chandler, the global head of currency strategy at Brown Brothers Harriman, in a recent note.
"Disappointing US data, better European data, and doubts about the ability to implement Trump’s economic agenda, coupled with the real and unhedged flows into European equities and emerging markets, took a toll on the greenback."
Where Trump is concerned, the hiccups and shifting timelines on healthcare and tax reform also helped soften the dollar.
In addition, central banks all over the world are slowly talking up plans to pump the brakes after years of providing stimulus through low interest rates. The euro surged on Tuesday after the European Central Bank said it needed to "gradually" adjust monetary policy, which markets interpreted to mean the removal of stimulus. The bank later tried to dial back its comments following the market reaction.
"The main driver of the foreign exchange market is the continued reassessment of the trajectory of monetary policy in the UK, EMU, and Canada," Chandler said. "There is greater confidence that, outside of Japan, peak monetary stimulus is behind us."
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June 30, 2017 | | Welcome to Finance Insider, Business Insider's summary of the top stories of the past 24 hours. The markets have rallied by a resounding 258% since bottoming out in 2009 in the aftermath of the financial crisis, and they continue to reach new heights. Concurrently, the hottest trend in wealth management has experienced explosive growth. Automated financial advisers, known as roboadvisers, rely on algorithms, not humans, to guide their investments. Such firms, which emerged after the financial crisis, have seen their assets under management balloon from millions in 2009 to hundreds of billions. Money managed by robos is expected to reach $8 trillion by 2020. But some Wall Streeters are questioning whether pure roboadvice startups, which have spent the overwhelming majority of their existence in a bull market, could survive a major correction or bear market. Warren Buffett's Berkshire Hathaway is now the biggest owner of two of the world's largest banks: Bank of America and Wells Fargo. He is set to make $12 billion on his investment in Bank of America alone. President Trump is considering a tariff that could put the economy on a path to "global recession." The dollar just had its worst quarter in years, and that's exactly what Trump wants. And here's what the latest healthcare hiccup means for the US economy, according to PIMCO. The SEC is going to start letting any company file in secret for an IPO. And Blue Apron has dropped below its IPO price. Evercore has been crushing it in dealmaking, and it's made another big hire. Australia's third-biggest lender is trying to find out who was behind a $300 million fraud. Deutsche Bank rejected House Democrats' call for Trump's finance details. And billionaire hedge funder Bill Ackman has set up his own Twitter account. There's a looming threat facing America's biggest grocers. Investors are trying to find stocks that can't get Amazon'd. And Nike beat on earnings, boosted by strong sales outside the US. An Amazon engineer let strangers play $50,000 of his money on the stock market — a month later, he's beating the Nasdaq. And a Wall Street bank is betting Nvidia will win the cryptocurrency battle. Lastly, if you want a very special Ferrari, check out the $350,00 GTC4 Lusso. | 
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