US President Donald Trump told reporters in Iowa that he was not concerned about the dollar's decline and thought the currency was "fine".
The Bloomberg Dollar Spot Index fell 0.4% on Tuesday, reaching its lowest level since March 2022. The US currency fell for a fourth straight day and weakened the most against the yen.
„I want to keep it that way – "Let the dollar just find its own level, which is fair," Trump said, responding to a question about concerns about the currency's decline.
"I can make it go up or down, like a yo-yo," the US president said, noting that such an outcome would be unfavorable.
Meanwhile, Bloomberg, citing its own data, reported that traders are betting the most on a sharper decline in the US currency amid political instability in the US since 2011, when the agency began collecting such data.
Bloomberg noted that investors are demonstrating the highest level of skepticism about the long-term prospects of the dollar since last spring.
"Unpredictable US policy is clearly having a negative impact on the dollar," said Jesper Fährstedt, senior analyst at Danske Bank A/S. “Events of last week have pushed markets to increase the political risk premium.“