Dollar Dips as Trump Boasts It’s ’Doing Great’

By Staff, Agencies

The dollar plunged to a four-year low on Tuesday, marking its steepest one-day drop in nearly a year, after US President Donald Trump welcomed the currency’s weakness.

The Bloomberg Dollar Spot Index, a key gauge of the greenback’s strength against other major currencies, recorded its steepest drop since last April, tumbling to its lowest level since February 2022.

The sell-off accelerated after Trump, speaking to reporters in Iowa, was asked if the dollar had fallen too much. "No, I think it’s great," he said. "Look at the business we’re doing. The dollar’s doing great."

Trump elaborated that he wants the dollar to “just seek its own level, which is the fair thing to do,” and contrasted his stance with past fights against China and Japan, which he accused of deliberately devaluing their currencies. “It’s hard to compete when they devalue,” he said.

Market analysts interpreted the comments as a significant departure from the traditional ‘strong dollar’ mantra upheld by administrations of both parties.

Axios, meanwhile, suggested that Trump’s refusal to recite this “boilerplate” language rattled traders.

The dollar’s sharp decline, linked to Trump’s 2025 global tariffs, has been compounded by a stronger yen and concerns over possible US–Japan currency intervention.

A weaker dollar can boost US exports but raises import costs, fueling inflation, hiking prices for travel and goods, and potentially deterring foreign investment.