Shortly after the US Presidential elections, the USD shot up and hitting a multi-year high, with investors expecting that a newly inaugurated President Trump will be able to revitalize the US economy through tax cut, infrastructure building and trade sanctions which all will assist in the strengthening of the USD. 8 months later, the USD has reached a 2 year low and has fallen rapidly by 6% against SGD within this short period of time.
There are 4 main reasons behind this sharp decline:
Reason 1: Chaos in Trump Administration
The rush of scandals that engulf the Trump administration and Trump’s Apprentice style of rapidly hire and fire of key position holders in the Trump administration meant that the White House spent more time combating one crisis after another. Rather than putting priorities on policies that will boost the US economy directly, Trump focuses on enacting immigration policies and repealing Obamacare and wasted …