Trump shrugs off dollar slump as index drops to multi-year low

US President Donald Trump said on January 27 that he believes the dollar remains strong, responding to questions about whether the currency had fallen too much in value.

Trump made the remarks while speaking with reporters in Iowa ahead of a speech expected to focus on economic issues, as he works to energise his core rural supporters in a state that will host several key congressional races in November.

When asked directly whether he thought the dollar’s value had declined excessively, Trump replied, “No, I think it’s great, the value of the dollar ... dollar’s doing great.”

Following his comments, losses in the dollar index deepened, with the gauge sliding to a session low of 95.566 — its weakest level since February 2022.

Trump also referred to past tensions with major economies over currency policies. “If you look at China and Japan, I used to fight like hell with them, because they always wanted to devalue,” he said.

He added that he does not want to see the dollar fall further in value. “I would want it to... just seek its own level,” Trump said.

Meanwhile, traders remain alert to the possibility of coordinated currency intervention by US and Japanese authorities, as well as this week’s decision on interest rates by the Federal Reserve.

By Tamilla Hasanova