The US dollar has fallen to its lowest level in four years after Donald Trump brushed off concerns over the currency’s fall, sending investors fleeing to traditional havens including gold and the Swiss franc.
The dollar dropped by 1.3% against a basket of currencies after the president’s comments on Tuesday, marking its fourth day of declines, then slipped by a further 0.2% on Wednesday morning.
“No, I think it’s great,” Trump said of the weaker dollar, during a visit to Iowa to promote his record on the economy. Asked whether he was concerned about the currency’s slide, he told reporters: “I think the value of the dollar – look at the business we’re doing. The dollar’s doing great.”
The greenback has tumbled by 10% over the past year, while Tuesday’s fall was the largest one-day drop since last April, when Trump announced his sweeping tariff plans, marking a global market sell-off.
A line graph shows the movement of the US dollar against six major currencies since 2020
The dollar has now touched its lowest level since February 2022, after unpredictable US policymaking, including Trump’s recent threats to take over Greenland and impose further tariffs on European allies, unleashed fresh geopolitical shocks.
“A weaker dollar is a two-sided coin,” said Steve Sosnick, a market strategist at Interactive Brokers, adding that it was good for multinational companies.
“If you have operations around the world and foreign currency revenue that will have a conversion advantage when you turn it into US dollars, that will be good. On the other, it makes imported goods more expensive and there might be some inflationary impact from that.”
The dollar’s slide has also propelled some rival global currencies to multi-year highs.
The Swiss franc has soared to its highest level against the dollar in more than a decade, as traders have sought out a store of wealth traditionally viewed as a haven insulated from global volatility. The franc has already climbed 3% against the dollar so far this year, after a 14% rise in 2025.
The euro has also surged to $1.20 against the dollar, setting a new milestone. The European single currency has climbed about 2% over the past week, marking its biggest weekly gain since last April, while 2025 was its best year since 2017 as it rose 13%.
Gold has continued to climb to new record highs, breaking through the level of $5,200 (£3,770) an ounce. The precious metal, which investors traditionally seek out during times of political uncertainty, has continued an extraordinary rally, after it hit $5,000 an ounce for the first time on Monday. The price of gold has jumped by almost 90% since Trump’s second inauguration a little over a year ago.
Some analysts expect the dollar to weaker further, amid concerns about presidential pressure on the Federal Reserve, combined with the economic outlook in the US and its rising debt load.
The US central bank is due to announce its first interest rate decision of the year on Wednesday, when it is widely expected to keep rates on hold, despite Trump’s demands for policymakers to cut rates.
After unprecedented attacks on the Fed’s chair, Jerome Powell – whom Trump has called “stupid” and threatened to fire – the justice department has also opened a criminal investigation into Powell over renovations to the central bank’s headquarters.
Powell’s term as chair is due to expire in May, and Trump could name a successor soon after the interest rates decision.
