<figure id="attachment_2802482" aria-describedby="caption-attachment-2802482" style="width: 1600px" class="wp-caption alignnone"><img loading="lazy" class="size-full wp-image-2802482" src="https://media.freemalaysiatoday.com/wp-content/uploads/2024/07/cd66fe62-dollar-reuters-020724.webp" alt="dollar" width="1600" height="1000" /><figcaption id="caption-attachment-2802482" class="wp-caption-text">The dollar traded mostly lower against major currencies after data showed slower-than-expected growth in US consumer spending. (Reuters pic)</figcaption></figure>
WASHINGTON: US commerce secretary Howard Lutnick said on Tuesday that he views the weaker dollar as being at a &#8220;more natural&#8221; level to promote US exports and expand economic growth.
Lutnick, asked about recent dollar weakness at a US senate appropriations subcommittee, said that for many years the dollar was manipulated higher by other countries to export more to the US, but President Donald Trump was changing trade dynamics.
&#8220;So the idea is, the dollar, where it is now, is just more natural. We are exporting more, and that&#8217;s why our GDP has grown so much, right?&#8221; Lutnick said.
He added that he thinks fourth quarter 2025 GDP will exceed 5% and could top 6% in the first quarter of 2026.
US treasury secretary Scott Bessent, the administration&#8217;s traditional spokesperson on the dollar&#8217;s value, has repeatedly insisted that the US has a &#8220;strong dollar policy,&#8221; and that the economic steps it is taking to make the US attractive to foreign investment supports that.
The dollar hit a four-year low in late January after Trump said the greenback&#8217;s weakness was &#8220;great.&#8221;
The dollar&#8217;s weakness has stemmed from multiple factors: expectations of continued Federal Reserve rate cuts, tariff uncertainty, policy volatility including threats to Fed independence, and rising fiscal deficits, all of which have eroded investor confidence in US economic stability.
On Tuesday, the dollar traded mostly lower against major currencies after data indicating slower than expected growth in consumer spending in December, and as the yen strengthened again following Prime Minister Sanae Takaichi’s election victory.
US commerce department data on Tuesday showed US retail sales were unexpectedly unchanged in December, putting pressure on consumer spending &#8211; which constitutes two-thirds of the economy. Data-producing agencies are still catching up on releases after delays caused by last year&#8217;s government shutdown.

MatchPoint Times

US commerce chief says dollar at ‘more natural’ level for trade

Commerce secretary Howard Lutnick highlights years of currency manipulation by other countries to export more to the US.

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