Dollar Falls 10% Over Year After Trump Praises Weakness

The ICE U.S. Dollar Index fell 10% over the past 12 months and 1.2% in January 2026, and President Donald Trump said "I think it's great" on Jan. 27, 2026, according to ICE data and a presidential remark reported by aides.

Economists and market strategists attributed the slide to Mr. Trump's tariff campaign, questions about Federal Reserve independence and U.S. public debt of $38.57 trillion, according to the Peter G. Peterson Foundation and analysts cited in reports.

Treasury Secretary Scott Bessent, in a Jan. 28, 2026 CNBC interview, reaffirmed a "strong dollar" policy and denied market intervention, a statement that briefly lifted the currency and marked a public contradiction with the president's comments, according to market data.

Market indicators show broad shifts in scale: gold reached nearly $5,500 per ounce and trading volumes surged, and the IMF reported that 56% of global foreign reserves were held in dollars in Q3 2025, while DTCC data show growing bets against the dollar/euro pair.

Investors and policymakers are watching a likely Fed nominee expected next week and derivatives positioning that could push the dollar lower, according to DTCC and market strategists, while analysts warn the trend could raise import costs and inflation risks.