Trump's Remarks Shake Currency Markets
President Trump's recent comments suggesting support for a weaker dollar have triggered widespread selling, causing the euro to surge past 1.20 against the US dollar for the first time since June 2021, reaching 1.2068 within a short time frame.
Adam Button of Investinglive noted that "the market interpreted this as tacit approval for dollar selling, triggering massive stop-loss orders that accelerated the euro's rise."
Dollar's Dominance Under Scrutiny
While Trump has long advocated for a weaker dollar to boost export competitiveness, the timing of his remarks is particularly sensitive amid growing global skepticism about the long-term dominance of the dollar in international finance.
- Euro breaks above 1.20
- Gold prices hit new records
- Global confidence in the dollar continues to erode
Geopolitical Tensions Add to Uncertainty
In the same speech, Trump also warned that Cuba could soon "fall," adding to market unease as investors monitor shifting monetary policies and the future stability of the world's reserve currency.