Trump Welcomes Weakening Dollar Amid Sharp Drop

President Donald Trump welcomed the weakening U.S. dollar on Tuesday, stating that its decline was beneficial for American business, a remark that coincided with the currency's sharpest single-day drop in nearly a year. Speaking to reporters in Iowa ahead of an event focused on the economy, Trump responded to questions about the dollar's value by saying, "No, I think it's great... The dollar's doing great." The comments accelerated a selloff, pushing the Bloomberg Dollar Spot Index to its lowest level since February 2022.

The index, which measures the dollar against a basket of major currencies, fell about 1.3 percent on Tuesday, marking its steepest decline since April of the previous year. It closed at 95.566, down more than one percent from the prior session, and hovered around 95.964 in early trading the following day. Against the euro, the dollar weakened to 0.83, its lowest since June 2021, while the euro itself surpassed the 1.20 mark for the first time since 2021. The yen and British pound also strengthened, with the pound reaching 1.3823, its highest in three years.

Trump's stance represented a shift from the long-standing policy of successive administrations favoring a...