FX.co ★ Dollar Hits 4-Year Low on Trump Remarks

On Wednesday, the dollar index hovered around 96 following a four-day decline, marking its lowest point since February 2022. This trend was influenced by US President Trump’s comments, expressing no concern regarding the currency's recent drop, suggesting that it had not decreased significantly. These statements supported the market's belief that the administration favors a weaker dollar to enhance export competitiveness. Additional pressure on the dollar stemmed from increased policy uncertainty in Washington, including Trump's renewed interest in acquiring Greenland and his criticisms of the Federal Reserve's independence. Speculation also arose regarding a potential collaborative currency intervention between the US and Japan to support the yen, further impacting the dollar’s value. Meanwhile, the Federal Reserve is widely anticipated to maintain current interest rates, with market participants closely watching for insights on the timing of future rate cuts, amid expectations of two quarter-point reductions by year’s end.