Currencies

Trump’s Embrace of Weaker Dollar Fuels Bets on New Downtrend

Trump Deepens US Dollar Woes as He Downplays Weakness

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By Ruth Carson and Greg Ritchie

January 28, 2026 at 2:34 AM UTC

Updated on

January 28, 2026 at 10:14 AM UTC

President Donald Trump’s relaxed tone about the dollar selloff is fueling speculation the US currency is at the start of a longer-term decline.

The dollar suffered its deepest one-day drop since last year’s tariff rollout after Trump said on Tuesday he didn’t think the currency had weakened excessively. Bloomberg’s dollar gauge slid as much as 1.2% as the comments sapped the appeal of the greenback and US Treasuries — boosting what has become known as the debasement trade.