The U.S. dollar fell about 1.3% on Tuesday, its most since April last year, after President Donald Trump refused to say the currency had fallen too much.
Trump, who is in Iowa to highlight the country’s economic performance, was asked by reporters if he was satisfied with the current value of the dollar and whether he thought it had fallen too much after falling 10% over the past year.
President Trump said of the dollar’s weakness, “I think it’s a great thing.” “I mean the value of the dollar, look at the business we do. [the] The dollar is doing great. This is very interesting. If you look at China and Japan, I was fighting tooth and nail with them. Because they always wanted to devalue the yen…you know, the yen and the renminbi, they always wanted to devalue the yen. They continue to devalue, devalue, and devalue. And I said, “That’s not fair.” Because if you lower your value, it becomes harder to compete. ”
The dollar index, which tracks the movement of the U.S. currency against six major trading partners (not including China), suffered its biggest single-day drop since April 10 last year, when it fell nearly 2% amid escalating trade tensions and the U.S. threat to impose 145% tariffs on China. On the same day, the S&P 500 index fell 3.5%, and the Nasdaq Composite Index fell 4.3%.
On Tuesday, the dollar also fell to its lowest level since February 2022.
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Dollar Index Futures for the Past Year
