US President Donald Trump commented on the dollar’s slump to a four‑year low, saying the American currency “is doing great” and “it’s fine.” He added that he did not advocate for the dollar’s steady fall in the exchange rate, preferring that the dollar “find its own level.” Trump reminded listeners that he has fiercely argued with China and Japan over their currency devaluations, highlighting an inconsistency in the US stance.
The dollar’s weakness is driven by a mix of factors eroding investor confidence in the US economy: expectations of further Fed rate cuts, uncertainty over tariff policy, political instability, including threats to the Fed’s independence, and a rising budget deficit. These systemic issues have created an environment in which investors are betting against the dollar.
Investors are overwhelmed by pessimism: traders have placed record bets on a dollar collapse, signaling deep disappointment with the greenback’s long‑term outlook. Trump’s stance, accepting the protracted weakness while insisting that the dollar is “in great shape”, underscores a contradiction between official rhetoric and the economic reality that traders and investors have already priced into the market.