Trump’s remarks in Iowa that the dollar’s fall is "great" have triggered the steepest decline in the currency since tariffs were introduced last year. The comment pushed the Bloomberg Dollar Spot index down 1.2%, weakening the U.S. dollar against all major peers before a brief recovery in Asian markets. Trump’s statements, echoing his long‑standing criticism of foreign currency devaluation and his own desire for a weaker dollar to boost exports, have alarmed investors who fear that his unpredictable policy stance may prompt a flight to alternative reserves such as gold and emerging‑market funds. The drop comes amid a backdrop of rising Treasury yields and expectations that the Federal Reserve could pause rate cuts, a move that would normally support the dollar. Analysts warn that a prolonged weakening could strain the U.S. economy, especially given the nation’s $39‑$40 trillion debt. Treasury Secretary Scott Bessent and other officials have stressed that the dollar’s value as a reserve currency remains strong, but Trump’s comments appear to have given traders a green light to sell the currency.

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