Trump’s trade policies are pushing the dollar down, economist says

President Trump’s trade policies are accelerating a weakening of the U.S. dollar, which is off to its worst start of a year in half a century, according to Harvard University economics professor Kenneth Rogoff.

The dollar fell by 10.8% since the first half of this year, according to the U.S. dollar index, which compares the United States’ currency with a basket of other world currencies like the yen and the euro. The drop makes it more expensive for Americans traveling abroad and increases the cost of imports.

“The dollar has been the talk of the global economy this year. Everyone’s worried about it,” the former International Monetary Fund chief economist said on Morning Edition. “They’re talking about the fact that the dollar might not be used as much anymore. They’re worried about the U.S. budget deficit and what will happen. They’re worried about Trump shutting off markets, which also makes it less attractive to all dollars.”

Rogoff said the dollar hasn’t weakened this much since then-President Richard Nixon canceled the convertibility of the dollar to gold in the 1970s.

This interview has been edited for length and clarity.

The broadcast version of this story was edited by H.J. Mai. The digital version was edited by Olivia Hampton.