Bundesbank Chief Says US Government to Blame for Strong Dollar

February 7, 2017 Share Print 0

The U.S. administration should blame itself rather than Germany for a recent strengthening of the dollar against the euro, the head of Germany’s Bundesbank said on Tuesday.

Jens Weidmann said comments by a top trade adviser of U.S. President Donald Trump that Germany was exploiting the United States and its European partners with an overly weak euro were “more than absurd”.

“The thesis that foreign currency manipulations are to blame for the current strong U.S. dollar is not borne out by facts,” he told a gathering in the western German city of Mainz.

“The most recent rise in the dollar is likely to be home-made, triggered by the political announcements of the new government,” he said.

Separately, in an interview with Redaktionsnetzwerk Deutschland media group (RND), Weidmann said there was no point in starting a currency war.

via Reuters

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Alfonso Esparza

Senior Currency Analyst at Market Pulse

Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.