US dollar sinks to its lowest level in four years | Dollar
The US dollar fell to a four-year low after Donald Trump ignored concerns about the currency’s decline, prompting investors to flee to traditional havens such as gold and the Swiss franc.
The dollar fell 1.3 percent against a range of currencies for a fourth straight day following the president’s comments on Tuesday, then fell another 0.2 percent on Wednesday morning.
“No, I think it’s great,” Trump said of the dollar’s weakening. Visited Iowa to tout his record in economics. Asked if he was worried about the decline in the currency, he told reporters: “The value of the dollar, look at what we are doing. The dollar is doing great.”
The U.S. dollar has lost 10 percent of its value last year, and Tuesday’s decline was the biggest one-day decline since last April, when Trump announced sweeping tariff plans that signaled a selloff in the global market.
The dollar hit its lowest level since February 2022 after unpredictable US policies unleashed new geopolitical shocks, including Trump’s threats to seize Greenland and impose additional tariffs on European allies.
“A weaker dollar is a two-sided currency,” said Steve Sosnick, market strategist at Interactive Brokers, adding that it is good for multinational companies.
“This is good if you have operations around the world and your foreign exchange income will provide a conversion advantage when converted to US dollars. On the other hand, it makes imported goods more expensive and this can have an inflationary effect.”
The dollar’s decline has also caused some rival global currencies to rise to multi-year highs.
The Swiss franc rose to its highest level in more than a decade against the dollar as traders sought a store of wealth traditionally seen as an insulated haven from global volatility. The franc is already up 3% against the dollar so far this year, following a 14% rise in 2025.
The euro also rose to $1.20 against the dollar, creating a new milestone. The European single currency rose nearly 2% last week, its biggest weekly gain since last April. 2025 was its best year since 2017, with an increase of 13%.
Gold continued to climb to new record highs, surpassing $5,200 (£3,770) per ounce. The precious metal, traditionally sought by investors in times of political uncertainty, continued its meteoric rise after hitting $5,000 an ounce for the first time on Monday. The price of gold is up nearly 90 percent since Trump’s second inauguration, just over a year ago.
Some analysts expect the dollar to weaken further due to concerns about the economic outlook in the United States and the pressure on the Federal Reserve along with the increasing debt burden.
The US central bank will announce its first interest rate decision of the year on Wednesday, when it is widely expected to keep interest rates steady despite Trump’s demands. Policymakers need to lower interest rates.
Following unprecedented attacks on Fed chairman Jerome Powell, whom Trump called “idiot” and threatened to fire, the justice department also launched a criminal investigation against Powell over renovations at the central bank’s headquarters.
Powell’s term as chairman ends in May, and Trump could name his successor immediately after the interest rate decision.
