The American dollar's exchange rate demonstrated a sharp decline after President Donald Trump's statements that he was not concerned about the current currency devaluation. During his visit to Iowa, the White House chief called the dollar's low level a "great" result for American business and exports. This is reported by Bloomberg, writes UNN.
Details
After Trump's speech, the dollar index (DXY) fell by 1.2%, dropping below the 96.00 mark – its lowest level since February 2022. Investors interpreted the president's words as a signal for further currency weakening, which increased pressure on the markets ahead of the Federal Reserve meeting.
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No, I think it's great. I think the value of the dollar – look at the business we're doing. The dollar is doing great
He added that he wants the currency to simply "find its level, which is fair."
Geopolitical and economic pressure factors
Bloomberg experts note that the dollar's fall is fueled not only by Trump's rhetoric but also by his unpredictable foreign policy, particularly recent threats to impose tariffs on goods from NATO countries over the situation around Greenland. The growing US debt burden and expectations of appointing a new, more administration-loyal head of the Federal Reserve, who may resort to radical interest rate cuts, also influence investor sentiment.
Trump himself, during a press conference, emphasized that he could manipulate the currency's strength, but considers it unnecessary.
I could make it go up or down like a yo-yo"
At the same time, he criticized China and Japan for their past attempts to devalue the yen and yuan, calling such competition unfair to American goods.
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