By Emmanuel Bobby
The U.S. dollar tumbled Tuesday after President Donald Trump said he was unconcerned about the currency’s recent weakness, comments that appeared to accelerate an already steep selloff.
“I think it’s great,” Trump told reporters in Iowa when asked whether the dollar had fallen too far. “The dollar’s doing great.”
Even before the remarks, the benchmark ICE U.S. Dollar Index was on track for its worst three-day drop since Trump’s April 2025 “Liberation Day” tariff rollout. Following his comments, the dollar’s losses deepened, with the index falling as much as 1.5%, setting it up for its sharpest one-day decline since April.
By late afternoon, the dollar was trading at its weakest level since early 2022.
The ICE U.S. Dollar Index tracks the greenback against a basket of major currencies, including the euro, British pound, Japanese yen, Canadian dollar and Swiss franc. The index rises when the dollar strengthens and falls when it loses value against those currencies.
Real-World Impacts
Moves in the dollar have direct consequences for consumers and businesses alike.
A weaker dollar makes overseas travel more expensive for Americans and can reduce the appeal of U.S. assets to foreign investors, according to Morgan Stanley analysts. It can also push up import prices, adding pressure to inflation.
There are potential upsides, however. A softer currency can make American goods cheaper abroad, providing a boost to U.S. exporters.
Speaking in Iowa, Trump said he wanted the dollar to “just seek its own level, which is the fair thing to do.”
“I could have it go up or go down like a yo-yo,” he added.
Trump also revisited long-standing complaints about foreign governments deliberately weakening their currencies to gain a trade advantage.
“If you look at China and Japan, I used to fight like hell with them, because they always wanted to devalue their yen,” he said. “It’s hard to compete when they devalue. But they always want our dollars.”
Since Trump rolled out his global tariff agenda last year, the dollar has remained under pressure. While U.S. stocks recovered from the market turbulence sparked by the tariffs, the currency did not. In 2025, the dollar index fell 9%, marking its worst annual performance since 2017.
The latest slide has also been fueled by sharp moves in the Japanese yen after Prime Minister Sanae Takaichi called a snap election, adding to volatility in global currency markets.
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