President Donald Trump is essentially signaling he is broadly okay with a weaker dollar, and the dollar’s main benchmarks sold off after remarks that he is not concerned about the recent decline and sees it as compatible with the dollar “doing great.”
On Tuesday, the Bloomberg Dollar Spot Index printed 1,174.72, down 13.238 points, or 1.11%, with an intraday high of 1,190.22 and low of 1,173.58.
The US Dollar Index (DXY) also weakened on the day, with DXY opening at 97.054 and closing at 95.712, down 1.345 points, or 1.39%.
When asked if he thinks the dollar declined too much, Trump said: “I think it’s great… Dollar’s doing great.”
Bloomberg correspondent Annmarie Hordern reported the Bloomberg Dollar Index fell after Trump said he isn’t concerned about the dollar’s recent decline. She also relayed Trump saying he could have it go up or down “like a yo-yo” when asked if he wants the dollar to decline more.
The greenback also took hits from policy uncertainty in Washington in recent days, including renewed Greenland takeover threats and criticism of the Federal Reserve’s independence, plus speculation about potential joint US-Japan currency intervention to support the yen. With the Fed widely expected to hold rates and markets scanning for clues on the next cut, the setup leaves the dollar vulnerable to any guidance that validates expectations for two quarter-point cuts before year end.
Information for this briefing was found via the sources mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
