US dollar fall to lowest level in four years
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The US dollar slid to a four-year low after former president Donald Trump dismissed worries about the currency’s decline, triggering a rush by investors toward traditional safe-haven assets such as gold and the Swiss franc.
Following Trump’s remarks on Tuesday, the dollar fell 1.3% against a basket of major currencies, extending its losing streak to a fourth straight session, before easing another 0.2% on Wednesday morning.
Speaking during a visit to Iowa, Trump played down the slide, suggesting the weaker dollar was a positive development and insisting that the strength of US business showed the currency was performing well.
Over the past year, the greenback has lost around 10% of its value. Tuesday’s fall marked its steepest single-day decline since April last year, when Trump’s announcement of sweeping tariff plans sparked a global market sell-off, the Guardian reported.
The currency has now sunk to its lowest point since February 2022, amid renewed uncertainty driven by unpredictable US policy signals, including recent threats to take control of Greenland and impose additional tariffs on European allies.
As confidence in the dollar weakened, investors sought refuge in the Swiss franc, which climbed to its strongest level against the dollar in more than ten years. The franc has already gained about 3% this year, building on a 14% rise last year. The euro also strengthened sharply, touching $1.20, after rising roughly 2% in a week—its biggest weekly advance since April last year. In 2025, the euro recorded its strongest annual performance since 2017, with a gain of about 13%.
Gold continued its surge to fresh record highs, crossing $5,200 an ounce. The precious metal, often favoured during periods of political and economic uncertainty, has rallied sharply, having breached $5,000 for the first time earlier this week. Since Trump’s second inauguration just over a year ago, gold prices have risen by nearly 90%.
Market analysts have warned that the dollar could weaken further, citing concerns over political pressure on the Federal Reserve, the broader US economic outlook, and the country’s growing debt burden. The Federal Reserve is set to announce its first interest rate decision of the year on Wednesday, and is widely expected to keep rates unchanged, despite Trump’s repeated calls for cuts.