"On Wednesday, Treasury Secretary Scott Bessent sought to do some damage control. It doesn't appear to be working yet. Understanding what's happening with the dollar now traces back to early 2025, when the greenback hit a multi-year high relative to other currencies just days before Trump's return to the White House. The dollar has tumbled 10% since, a victim of the "Sell America" trade that first came into vogue after Trump announced sweeping tariff plans last April."
"The dollar was already under pressure this month as Trump's rhetoric about acquiring Greenland and his speech at the World Economic Forum in Davos, Switzerland reignited that "Sell America" trade. Last week brought another blow to the greenback when Reuters reported that the New York Federal Reserve had conducted rate checks on the dollar/yen pair, putting traders on alert of a potential coordinated currency intervention by U.S. and Japanese authorities."
"And yet, it was a brief comment by Trump on Tuesday that saw the dollar suffer its worst one-day decline since April on Wednesday as currency traders ditched the dollar in favor of safe-haven assets like gold and the Swiss franc. When asked by a reporter if the dollar had declined too much, Trump brushed off any concerns, saying, "No, I think it's great.""
The U.S. dollar plunged to a four-year low after a six-word comment by President Donald Trump intensified an ongoing selloff. The dollar has tumbled 10% since early 2025 when it hit a multi-year high, driven by a "Sell America" trade that followed tariff plans. Pressure mounted from Trump's Greenland rhetoric and his Davos speech, and reports that the New York Fed ran dollar/yen rate checks raised fears of coordinated intervention. Traders shifted into safe havens such as gold and the Swiss franc. Treasury Secretary Scott Bessent attempted damage control, but the dollar continued to weaken.
Read at Fast Company
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