Trump Defends Dollar Strength as Markets Register Sharp Decline

U.S. President Donald Trump addressed recent moves in the U.S. dollar on Tuesday, stating that he believes the currency remains strong despite market concerns over its recent decline. His comments came in response to questions about whether the dollar had weakened excessively in recent sessions.


Trump said he sees the value of the U.S. dollar as “great,” adding that in his view the currency continues to perform well. The remarks reflected a consistent position he has taken in past discussions, where he has emphasized confidence in the dollar as a reflection of overall U.S. economic strength.


References to Past Currency Tensions

In elaborating on his view, Trump pointed to previous disputes with major U.S. trading partners, particularly China and Japan. He recalled opposing what he described as attempts by those countries to weaken their currencies in order to gain trade advantages. According to Trump, the U.S. government challenged such practices, framing currency stability as an important component of fair trade relations.


Market Response Diverges From Official Messaging

While the president’s comments sought to project confidence, financial markets moved in the opposite direction. The U.S. Dollar Index declined by around 1.2% on the day, marking its steepest daily drop since April 2025. The index fell to approximately 95.85, its lowest level since early 2022, reflecting broad selling pressure on the currency.


Broad-Based Dollar Weakness

The dollar weakened against all major currencies during the session, with the largest losses recorded against the Swiss franc. It also declined notably versus the euro, British pound, Japanese yen, Canadian dollar, Australian dollar, and New Zealand dollar, indicating that the move was broad-based rather than driven by a single currency pair.


Focus Shifts Back to Fundamentals

The divergence between political commentary and market performance underscores the extent to which investors are focused on underlying economic and policy factors. Currency markets continue to weigh interest rate expectations, growth prospects, and upcoming policy decisions, which appear to be exerting greater influence on the dollar’s trajectory than official statements.

As attention turns to forthcoming economic data and monetary policy decision, the dollar’s recent decline highlights ongoing uncertainty about its near-term direction, even as U.S. leadership maintains a confident public stance on the currency’s strength.