Bloomberg’s dollar index fell as much as 1.2%, hitting its lowest level in nearly four years
The dollar weakened on Tuesday after President Donald Trump said he was not worried about its recent drop and that he wanted the currency to find its own level, according to Bloomberg.
Following his comments, Bloomberg’s dollar index fell as much as 1.2%, hitting its lowest level in nearly four years. Traders reacted quickly because the dollar had already been under pressure in recent months.
Global markets react
The euro and British pound climbed to their strongest levels since 2021, while the Swiss franc touched a high not seen since 2015.
In Asia, the South Korean won and the Malaysian ringgit led gains. Gold surged to a fresh record above $5,250 an ounce as investors moved toward safer assets.
Experts warned that the dollar may be entering a new phase of weakness as policymakers appear comfortable with a softer exchange rate.
With US debt nearing $40 trillion, investors worry about long-term stability. Options market data shows rising demand for protection against further dollar losses.
Mixed views on what comes next
While a weaker dollar helps US exporters, analysts warn that policy uncertainty and reduced confidence could hurt foreign investment and increase market volatility in the months ahead.