President Donald Trump dismissed concerns about the U.S. dollar’s sharp slide on Tuesday, comments that coincided with the currency hitting its weakest level since early 2022.
Dollar drops to a 2022 low
The benchmark ICE U.S. Dollar Index, which tracks the dollar against a basket including the euro, British pound, Japanese yen, Canadian dollar, and Swiss franc, fell as much as 1.5% on the day.
The move put the index on track for its worst one-day decline since April, and capped what was described as the worst three-day drop since Trump’s April 2025 “Liberation Day” tariff rollout.
As of 4:30 p.m. ET, the dollar was at its weakest level since early 2022.
Trump: ‘I think it’s great’
Speaking to reporters in Iowa, Trump said he was not worried about the recent weakness:
“No, I think it’s great, the value of the dollar … dollar’s doing great.”
Losses accelerate after comments
Reuters reported that losses in the dollar index accelerated after Trump’s comments, with the index hitting a session low of 95.566, the lowest since February 2022.
Trump also referenced past disputes over currency policy with major trading partners.
He said:
“If you look at China and Japan, I used to fight like hell with them, because they always wanted to devalue.”
Traders watch the Fed
Trump said he did not want to see the dollar decline more, adding he would prefer it to “seek its own level,” according to Reuters.
Traders were also watching for possible coordinated currency intervention by U.S. and Japanese authorities, as well as this week’s Federal Reserve interest rate decision.
