The US dollar has slumped to a four-year low after President Donald Trump played down concerns over its decline, pushing investors toward safe-haven assets such as gold and the Swiss franc.
The United States dollar fell to its lowest level in four years after President Donald Trump dismissed worries about the currency’s sustained decline, triggering a shift by investors into traditional safe-haven assets. The dollar dropped 1.3% against a basket of currencies on Tuesday and slipped a further 0.2% on Wednesday morning, extending its losses to a fourth consecutive day amid heightened market uncertainty.
Responding to questions during a visit to Iowa, Trump downplayed the slide in the greenback. “No, I think it’s great,” he said. “I think the value of the dollar look at the business we’re doing. The dollar’s doing great.” Over the past year, the currency has fallen by about 10%, with Tuesday’s decline marking its steepest single-day drop since last April following Trump’s tariff announcements.
The dollar has now reached its weakest point since February 2022, pressured by unpredictable policymaking and geopolitical shocks, including Trump’s threats to take over Greenland and impose tariffs on European allies. Steve Sosnick, a market strategist at Interactive Brokers, said the weaker dollar carries mixed implications. “If you have operations around the world and foreign currency revenue, that will have a conversion advantage when you turn it into US dollars. On the other, it makes imported goods more expensive and there might be some inflationary impact from that.” Meanwhile, the Swiss franc rose to its strongest level against the dollar in more than a decade, the euro climbed to $1.20, and gold surged past $5,200 an ounce, extending a record-setting rally.