Trump Shrugs Off Dollar Slump as Currency Hits 4-Year Low

New Delhi, january 28, 2026: President Donald Trump dismissed concerns over the declining value of the U.S. dollar on Tuesday, describing the currency’s performance as “great” even as it tumbled to its lowest level since February 2022.

The president’s comments, made to reporters ahead of an economic rally in Iowa, triggered a fresh wave of selling in global markets. The U.S. Dollar Index (DXY), which measures the greenback against a basket of six major currencies, accelerated its slide following his remarks, dropping below the 96.00 mark.

“Let It Seek Its Own Level”

When asked if he was worried that the dollar had declined too much in recent weeks, Trump remained characteristically upbeat.

“No, I think it’s great. The value of the dollar… the dollar’s doing great,” Trump said. He added that he was not actively seeking to push the currency lower but was comfortable letting it “just seek its own level.”

The president also used the opportunity to contrast his administration’s approach with that of foreign competitors. “If you look at China and Japan, I used to fight like hell with them because they always wanted to devalue,” he noted, suggesting that a naturally adjusting dollar is preferable to the “manipulation” he has long accused other nations of practicing.

Why is the Dollar Dropping?

Market analysts point to a “perfect storm” of factors currently weighing on the U.S. currency:

• Tariff Uncertainty: Recent threats of new tariffs—most notably involving disputes over Greenland and trade with European allies—have unsettled international investors.
• Fed Independence: Rising tensions between the White House and the Federal Reserve, including the president’s vocal desire for lower interest rates, have led to a “debasement trade” where investors move capital into assets like gold.
• Coordinated Intervention: Rumors have swirled that the U.S. and Japan may be conducting “rate checks,” a move often seen as a precursor to official intervention to prop up the Japanese yen against a weakening dollar.

A Double-Edged Sword

While a weaker dollar can cause anxiety for tourists and importers, it offers significant advantages for certain sectors of the American economy.

“A weaker dollar is a two-sided coin,” says Steve Sosnick, market strategist at Interactive Brokers. “It’s a massive boost for U.S. exporters and multinationals because it makes American goods cheaper abroad. However, it also makes imported goods more expensive, which could keep inflation ‘sticky’ for the average consumer.”

As the dollar hits these multi-year lows, other assets are reaping the benefits. Gold has surged to record highs, recently crossing the $5,200 per ounce threshold, as investors seek a “safe haven” from currency volatility.

What’s Next?

All eyes now turn to the Federal Reserve’s upcoming meeting. While the president remains satisfied with the current trajectory, the Fed must balance the benefits of export competitiveness against the risk of rising import costs fueling inflation.