Dollar at its lowest since 2022. Trump: «It’s improbable» | EUROtoday

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The greenback sank to its lowest since early 2022 after President Donald Trump mentioned he was happy with its latest decline. “No, I think it’s great,” Trump instructed reporters in Iowa late Tuesday night time, when requested if he was apprehensive in regards to the foreign money’s decline. “I think the value of the dollar… look at the deals we’re doing. The dollar is doing great.”

Trump’s comments added fuel to the fire of what was already the dollar’s deepest decline since the introduction of tariffs sent markets into a tailspin last year, stoking fears that his unpredictable monetary policy changes would prompt foreign investors to retreat from the United States. Following his comments, the Bloomberg Dollar Spot Index extended losses as much as 1.2%, with the U.S. currency weakening against all its major counterparts before firming slightly in Asian trading on Wednesday.

The president has long accused other countries of seeking weaker exchange rates to stimulate exports, and Treasury Secretary Scott Bessent has highlighted the difference between the price of the dollar and its value as a reserve currency. Hence, these latest comments were interpreted as a green light for financial operators to sell the US currency.

“Many members of the Trump government want a weaker dollar to make exports more competitive,” mentioned Win Thin, chief economist on the Bank of Nassau. They are “taking a calculated threat. A weaker foreign money could also be a great answer so long as the state of affairs does not get too messy.”

Part of the greenback’s decline was attributable to the yen’s sharp rebound since final week, as merchants braced for potential intervention by Japanese officers to help the nationwide foreign money.