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What Trump said after US dollar's decline to 4-year low, ‘I think it’s great…’
Donald Trump has dismissed the US dollar’s recent decline to a four-year low, insisting that the currency is “doing great.”
Donald Trump has dismissed the US dollar’s recent decline to a four-year low, insisting that the currency is “doing great.” However, experts have warned that economic and political uncertainty is fueling the slide.
On Tuesday, January 27, the US Dollar Index hit its lowest level since February 2022. As of Wednesday morning, January 28, it was trading at around 96.2, below the 1973 baseline of 100.
On being asked about the currency extending losses, President Trump said, “I think it’s great.”
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“The value of the dollar—look at the business we’re doing,” he told reporters in Iowa, as reported by Newsweek. “No, the dollar’s doing great.”
‘The U.S. has signaled a willingness to abandon the geopolitical and economic world order’
The greenback underwent a sustained slump over the first weeks of 2025. Michael Connolly, professor of economics at the University of Miami’s Herbert Business School, told Newsweek that the increasing deficits and continuous inflation had eroded international confidence in the currency, “particularly as a store of value and safe haven.”
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While tensions over Greenland and sovereign sales of U.S. Treasurys were cited as some contributing factors, Connolly said that the dollar remains the “main game in town as a unit of account and global medium of exchange.”
“In the last few weeks, and especially in the discussion regarding Greenland, the U.S. has signaled a willingness to abandon the geopolitical and economic world order that it has anchored since WW II,” said Ryan Chahrour, Ernest S. Liu professor of economics and international studies at Cornell University. “The fall in the U.S. dollar and increase in gold prices since January 16 are most likely a consequence of this.”
Economist Barry Eichengreen told the outlet, “I would point to high economic policy uncertainty in the United States which has led foreign investors to trim their holdings of U.S. Treasurys, and to Trump's threats to the independence of the Fed.”
