Dollar Plummets to Four-Year Low Amidst Presidential Rhetoric, Driving Flight to Gold and Franc

WASHINGTON/NEW YORK – The US dollar has entered a sharp depreciation cycle, sinking to its lowest level against a basket of major currencies in four years after President Donald Trump dismissed concerns over the greenback’s slide. The currency’s decline, which saw a 1.3% drop on Tuesday alone, signals growing global uncertainty regarding US monetary policy and geopolitical stability.President Trump’s comments, made during an economic promotion tour in Iowa, where he stated, “I think it’s great,” regarding the weaker dollar, removed a key psychological floor for the currency. This statement has accelerated a trend that has seen the dollar lose 10% of its value over the past year, with Tuesday’s single-day fall representing the largest since the market sell-off following his sweeping tariff announcements last April.The current low point, last seen in February 2022, is compounded by recent unpredictable US policy signals, including renewed threats regarding trade tariffs against European allies and controversial diplomatic maneuvers. Market strategists note the dual impact of a weaker dollar. “A weaker dollar is a two-sided coin,” noted Steve Sosnick, a market strategist at Interactive Brokers. “It provides a conversion advantage for US multinationals reporting foreign revenue, but it simultaneously raises the cost of imported goods, potentially fueling domestic inflation.”This volatility has spurred a significant rotation into perceived havens. The Swiss Franc has appreciated to its highest level against the dollar in over a decade, climbing 3% year-to-date after a substantial 14% rise in 2025. Simultaneously, the Euro has surged to $1.20, marking its strongest weekly gain since the previous April. Most dramatically, gold has continued its extraordinary rally, breaching $5,200 per ounce after hitting $5,000 earlier in the week—a nearly 90% increase since the President’s second inauguration.Further downward pressure on the dollar is anticipated, driven by concerns over potential presidential interference with the Federal Reserve. The central bank is widely expected to hold interest rates steady at its upcoming meeting, defying explicit calls from the White House for rate cuts. Compounding the institutional stress, the Department of Justice has reportedly opened a criminal investigation into Fed Chair Jerome Powell regarding headquarters renovations, adding a layer of unprecedented political risk directly impacting monetary leadership ahead of Powell’s term expiration in May.Source: Based on reporting from The Guardian, January 28, 2026.