Trump Goes Gaga As China Dropped the Price of their Currency to an almost a Historic low.

China allowed its currency to drop in value against the dollar, with the exchange rate for one yuan falling as low as 14 U.S. cents Monday. The move to weaken its currency reduces the relative price for Chinese goods purchased abroad, making U.S. products comparatively more expensive for foreign buyers.

Trump has accused China of currency manipulation to steal businesses and factories, hurt our jobs, depress our workers’ wages and harm our farmers’ prices. Not anymore!” Trump tweeted after the Dow Jones Industrial Average lost more than 500 points.

Trump has often accused China of manipulating its currency, even though the Treasury Department has declined to formally label Beijing a “currency manipulator.” 

The president has also pressured the Fed to counteract the alleged manipulation of yuan by aggressively cutting interest rates. Cheaper borrowing costs reduce the value of the dollar, which would counteract efforts by China to weaken the yuan.

The Fed, an independent agency, is almost certain to ignore Trump’s request for a weaker dollar.