New York — Donald Trump may have a point: the dollar is indeed strong. Judging from the US Federal Reserve’s own trade-weighted dollar index, the US currency is now about 7% above its four-decade average. A strong dollar isn’t necessarily detrimental to the economy, but it may torpedo Trump’s vision to revive the US’s manufacturing sector. Before his comments to the Wall Street Journal that the strong dollar was "killing" the ability of US companies to compete, the 22% appreciation since mid-2014 had already worsened the trade deficit, while the full effect had not yet percolated into the real economy. What can Trump and his administration do if they want a weaker dollar? Here are five options. 1. Jawboning Talk is cheap, but it has worked for Trump — so far. If history is any guide, traders stop listening to government officials and central bankers in the absence of concrete policies that target exchange rates. Just look at Japan. When Abenomics lost steam and traders started to be...
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