The US dollar is struggling to recover from a selloff sparked by Donald Trump’s comments suggesting he is happy with the currency’s recent decline.
The greenback has weakened against major currencies this week, fueled by speculation that the White House might be willing to let it slide.
Trump told reporters in Iowa, “No, I think it’s great,” when asked if he was worried about the dollar’s decline.
He added: “Look at the business we’re doing. The dollar’s doing great.” Trump also said he wants the dollar “to be — just seek its own level, which is the fair thing to do”
The dollar sank against the euro, yen, pound, South Korean won, and Chinese yuan, with Trump’s latest tariff threats adding to the pressure.
Observers are also concerned about the impact of Trump’s policies on the US economy.
Win Thin, at Bank of Nassau 1982 Ltd, noted: “Foreign exchange typically is the leader in terms of showing market discomfort with a country’s policies and economic outlook, so this dollar weakness bears watching.”
Meanwhile, US consumer confidence has plunged to its lowest level since 2014, as households worry about inflation and the cost of living.
Equity markets, however, are performing well in Asia, driven by tech giants like Apple, Microsoft, and Amazon.
Seoul is hitting new highs, with chipmakers Samsung and SK hynix leading the charge.
Jakarta plunged over 8% after MSCI called for regulators to investigate ownership concerns.
MSCI stated, “investors highlighted that fundamental investability issues persist due to ongoing opacity in shareholding structures and concerns about possible coordinated trading behaviour that undermines proper price formation.
Traders are focused on earnings from Wall Street’s Magnificent Seven, including Microsoft, Meta, Tesla, and Apple. Tony Sycamore, market analyst at IG, said: “These results will provide critical insights into the trajectory of the artificial intelligence trade.”
Sycamore added: “After losing momentum in the final months of 2025 due to growing scrutiny over return on investment, capital expenditure and real-world constraints, the market is eager to see if the AI narrative can regain traction in 2026”.
Key Figures:
– Tokyo – Nikkei 225: UP 0.1% at 53,358.71
– Hong Kong – Hang Seng Index: UP 2.3% at 27,761.57
– Shanghai – Composite: UP 0.3% at 4,151.24
– Dollar/yen: UP at 152.69 yen
– Euro/dollar: DOWN at $1.1995
– Pound/dollar: DOWN at $1.3806
– West Texas Intermediate: UP 0.7% at $62.80 per barrel
– Brent North Sea Crude: UP 0.6% at $67.96 per barrel
– New York – Dow: DOWN 0.8% at 49,003.41
– London – FTSE 100: UP 0.6% at 10,207.80
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