Strong dollar sounds good but a weak one is better for US economy, Trump says

'You make a hell of a lot more money' with a weaker dollar, US President says

US President Donald Trump spoke to reporters ahead of his trip to Scotland. EPA

President Donald Trump on Friday said a strong US dollar "sounds good", but touted reasons why a weaker greenback is better for the American economy.

The dollar index, which measures the greenback's strength against six major currencies, steadied on Friday after hitting two-week lows earlier in the week. It is still down roughly 10 per cent over the six months Mr Trump has been in office.

“So when we have a strong dollar, one thing happens: It sounds good. But you don't do any tourism. You can't sell tractors, you can't sell lorries, you can't sell anything,” Mr Trump said at the White House before leaving on a trip to Scotland.

“You make a hell of a lot more money” with a weaker dollar.

Mr Trump has often complained that dollar strength blunts US export competitiveness and hurts US manufacturing and jobs.

Mr Trump said manufacturers would be the first to benefit from a falling dollar, citing construction and mining equipment maker Caterpillar, whose shares have risen 16 per cent over the last month.

Japan and China fought for weaker currencies for decades and were able to dominate markets over the years, Mr Trump said.