U.S. President Donald Trump told reporters in Iowa on Tuesday that he considers the dollar's value to be "great," responding to a question about whether the currency had fallen too far. The comments came ahead of a speech expected to focus on the economy, delivered as he seeks to energize rural supporters in a state with several competitive congressional contests this year.
Asked directly if he thought the value of the dollar had declined too much, Trump replied: "No, I think it’s great, the value of the dollar ... dollar’s doing great."
Markets reacted swiftly. Losses in the dollar index accelerated after the president's remarks, with the index sliding to a session low of 95.566 - its weakest level since February 2022. The move contributed to heightened market attention on currency dynamics and policy risk.
On the subject of foreign exchange practices, Trump said: "If you look at China and Japan, I used to fight like hell with them, because they always wanted to devalue." He added that he does not want to see the dollar weaken further, saying, "I would want it to... just seek its own level."
Traders are watching closely for signs of coordinated action. The remarks coincided with market vigilance around two potential catalysts: possible coordinated currency intervention by U.S. and Japanese authorities, and this week’s Federal Reserve interest rate decision.
Context and market reaction
Trump delivered the remarks in Iowa as part of a broader political schedule; the location also hosts several important congressional races scheduled for November. The immediate market response was a sharper drop in the dollar index, which reached 95.566 in the session and marked the lowest reading since February 2022.
What he said
- On the dollar's overall value: "No, I think it’s great, the value of the dollar ... dollar’s doing great."
- On past disputes with trading partners: "I used to fight like hell with them, because they always wanted to devalue."
- On where he wants the dollar to go: "I would want it to... just seek its own level."
The combination of presidential commentary, the recent low in the dollar index, and upcoming policy events has put currency markets and traders on alert for any signs of intervention or shifts in U.S. monetary policy.