"Parallels have been drawn with an earlier period of sustained dollar strength. The dollar’s 50% increase between 1980 and 1985 was brutal for America’s exporters. The pressure for higher trade barriers was only defused by the Plaza Accord of 1985, a rich-country pact to weaken the dollar. The biggest concern about the latest dollar rally is that it will spur not agreement but conflict. Mr Trump seems all-too eager to resort to protectionism in a misguided attempt to balance America’s trade. A stronger dollar might be the trigger for such a disastrous move."
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