Washington: President Donald Trump on Friday reaffirmed his confidence in the strength and global dominance of the U.S. dollar, calling it the “currency of choice,” even as the greenback faced significant pressure in international markets.
Speaking to reporters aboard Air Force One en route to his Mar-a-Lago resort in Florida, Trump sought to reassure investors amid growing concerns over the stability of U.S. trade policy. “We’re the currency of choice. We’re always going to be,” Trump declared. “I think the dollar is tremendous.”
His remarks came just hours after the dollar hit its lowest level against the euro in over three years. The decline followed a week of heightened market volatility, largely driven by investor uncertainty surrounding the administration’s shifting stance on tariffs and trade relations with key global partners.
Typically viewed as a safe haven during times of global financial stress, the U.S. dollar has recently faced headwinds due to the administration’s unpredictable trade strategies. Analysts noted that mixed messages on tariffs and trade deals have left investors unsure of future economic conditions, prompting some to seek shelter in other currencies, including the euro and Japanese yen.
Despite these fluctuations, Trump insisted that the dollar remains a pillar of economic strength. “There’s never been a currency like it,” he said. “People want to hold dollars, and they’re going to keep wanting to hold dollars.”
Economists, however, warn that continued uncertainty in trade policy could weigh further on the dollar’s performance, particularly if it affects investor confidence in U.S. economic leadership and stability. Some have expressed concern that a weaker dollar could also complicate efforts to manage inflation and interest rates, especially as the Federal Reserve navigates a delicate monetary environment.
Still, the president’s comments reflect a broader view within the administration that U.S. economic fundamentals — including low unemployment, strong corporate earnings, and steady GDP growth — remain sound despite temporary market fluctuations.
As global markets continue to monitor U.S. trade developments closely, all eyes will be on how the administration balances its protectionist rhetoric with the need to maintain confidence in the dollar and the broader economy.