Trump Says Value of the Dollar Is ‘Great’ as Currency Hits Four-Year Low
By Ismail Shakil, Saqib Iqbal Ahmed, and Laura Matthews
January 28, 2026
In remarks that added to pressure on the U.S. dollar, former President Donald Trump on Tuesday declared the value of the dollar to be "great," even as the currency recently hit its lowest level in four years. The comments came amid ongoing dollar weakness fueled by economic uncertainties and policy dynamics in the United States.
Dollar Weakness Stems from Multiple Factors
The U.S. dollar has weakened in recent months due to a combination of factors, including widespread expectations of further Federal Reserve interest rate cuts, ongoing tariff uncertainties, political volatility — including concerns about the independence of the Federal Reserve — and rising fiscal deficits. These issues have collectively eroded investor confidence in the stability of the U.S. economy and contributed to a decline in demand for the greenback.
Despite the currency’s recent losses, Trump expressed satisfaction with the dollar’s value, telling reporters in Iowa that he thought the dollar was "doing great." When asked if he believed the dollar had fallen too far, he responded, “No, I think it’s great, the value of the dollar… dollar’s doing great.”
Market Reaction and Currency Index Performance
Following Trump’s comments, losses in the dollar index—which tracks the dollar’s strength against a basket of six major currencies—accelerated. The index fell to a session low of 95.566, marking the weakest level since February 2022. The dollar’s decline was also influenced by speculation about coordinated currency intervention by the U.S. and Japanese authorities aimed at supporting the weakening Japanese yen, which had rallied sharply by about 4% over two sessions.
Steven Englander, head of global G10 FX research and North America macro strategy at Standard Chartered, noted, "FX market participants are always looking for a trend to jump on. Often officials push back against abrupt currency moves but when the President expresses indifference or even endorses the move it emboldens USD sellers to keep pushing."
Trump Comments Reflect Trade Focus
Trump referenced his past confrontations with countries such as China and Japan over currency devaluation, saying, "If you look at China and Japan, I used to fight like hell with them, because they always wanted to devalue." His emphasis on currency issues ties into his broader concerns about trade balances and economic competitiveness.
Speaking ahead of a speech expected to focus on the economy in the key swing state of Iowa, Trump appeared to position himself as a defender of U.S. trade interests, a message likely intended to energize his rural voter base ahead of critical congressional races in November.
Dollar’s Weakness: Challenges and Advantages
A weaker dollar is a double-edged sword. On one hand, it benefits U.S. exporters by making American goods and services cheaper and more competitive abroad, potentially helping to narrow the trade deficit. Multinational corporations also stand to gain as foreign profits convert into more U.S. dollars.
On the other hand, the decline in dollar value raises the cost of imports, which can contribute to inflationary pressures domestically. Additionally, foreign countries and corporations with dollar-denominated debt may find it easier to repay obligations as their local currencies strengthen against the dollar.
Eugene Epstein, head of trading and structured products at Moneycorp, highlighted that "the administration wants a weaker dollar," suggesting this position aligns with efforts to improve the trade deficit. Market strategist Steve Sosnick of Interactive Brokers noted the trade-offs, saying, "It’s good for multinationals… But it makes imported goods more expensive and there might be some inflationary impact from that."
Outlook
As the Federal Reserve weighs its next moves against a backdrop of economic uncertainty, and with geopolitical influences on trade and currency markets ongoing, the dollar’s trajectory remains a key focal point for investors, policymakers, and businesses worldwide.
Reporting by Ismail Shakil, Costas Pitas, Chuck Mikolajczak, Bhargav Acharya, Saqib Iqbal Ahmed, Chibuike Oguh, Laura Matthews and Suzanne McGee; Editing by Megan Davies, Deepa Babington, and Jamie Freed
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