Traders and businesses showed different reactions to the falling dollar. What the media is writing
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- Traders and businesses showed different reactions to the falling dollar. What the media is writing
The decline in the value of the dollar to its lowest level in almost four years of trading has worried the American press. But, contrary to the expectations of journalists, US President Donald Trump calmly reacted to the fall in the national currency, which provoked an increase in sales of American securities on the market. How foreign media assess the state of the American currency is in the Izvestia article.
Bloomberg: Trump's reaction triggered a fall in the dollar
The calm attitude of US President Donald Trump towards the depreciation of the dollar is fueling speculation that the US currency is at the beginning of a long decline. The dollar experienced its deepest one-day drop since the tariffs were introduced in 2025. According to Stephen Jen, founder of Eurizon SLJ Capital, Trump's reaction marks the beginning of a new stage of decline, as his administration is targeting an exchange rate that benefits American exporters. Investors may not be ready for this, as they are used to dealing with a strong dollar and a strong US economy.
Bloomberg
The recent drop in the dollar is great news for American businesses, Trump told reporters in Iowa. Although this is in line with previous statements by U.S. officials, his words on Tuesday evening had an impact on the currency markets, partly because they appeared to confirm the sharp decline in the dollar in recent trading sessions.
The Bloomberg dollar index fell to its lowest level in almost four years of trading in New York, which led to the strengthening of the euro and the pound sterling to their highest positions since 2021, and the Swiss franc consolidated at its highest level since 2015. The price of gold has set a new record, exceeding $5,250 per ounce. Trump's support for the weakening of the currency may become an additional deterrent for foreign holders of American assets.
Financial Times: Investors abandon the dollar for safe haven assets
On Tuesday, the dollar fell by 1.3% against a basket of major currencies, as a result of which its exchange rate turned out to be the lowest in the last four years: since the beginning of 2026, the US currency has fallen by 2.6%. On Wednesday, the yen continued its three-day rally as traders in Tokyo reacted to Trump's overnight comments, hitting an October high of 152.3 yen per dollar.
Financial Times
The transition to other safe-haven assets also accelerated on Tuesday. Silver prices rose by more than 8% and reached $112 per ounce. "The strengthening of gold and the weakening of the dollar reflect serious doubts about Trump's chaotic, spontaneous policies," said Trevor Greatham, head of asset investment at Royal London Asset Management, referring to the administration's recent attacks on Canada and South Korea.
MUFG analysts noted that the euro benefited from "its role as the anti-dollar" amid growing concerns about U.S. policy. Against the background of the well-being of risky assets, the dollar may suffer. Thomas Simons, chief U.S. economist at Jefferies, believes that the "sell America" theme is still relevant, as international investors are not sure that the dollar's decline is over.
Reuters: Dollar weakening could be a strategy to strengthen the yen
After US President Donald Trump ignored the recent weakening of the dollar, the US currency continued to fall, which strengthened the yen, euro and pound sterling in anticipation of the Federal Reserve's decision. When asked about the fall in the national currency on Tuesday, Trump said that the value of the dollar was "excellent": traders took this as a signal to increase sales of the US currency.
Reuters
Although the president's comments were not something fundamentally new, they came at a time when the dollar was under pressure, as traders were preparing for a possible coordinated currency intervention by the US and Japanese authorities to stabilize the yen.
Investors' attention will be focused on the Federal Reserve's decision, which is expected today: it is assumed that the central bank will maintain its previous policy. Prashant Newnaha, senior Asia-Pacific interest rate strategist at TD Securities in Singapore, believes that Trump's strategy is to keep the economy at a high level by the midterm elections and get ahead of the Fed, which does not seem to want a lower dollar. The strengthening of the yen began on Friday amid talk that the United States and Japan will conduct a rate review, which is considered a harbinger of interventions to stabilize the market.
The Washington Post: US economic growth relies on "one-legged stools"
Low unemployment, high consumer spending and steady business investment have contributed to the most significant economic growth in recent years, with the US economy growing by 4.4% in the last quarter. But this growth is becoming more concentrated. KPMG chief economist Diane Swank describes this as "one-legged stools." The stability of the labor market is explained by the growth of jobs in healthcare, but such a concentration of growth in one sector poses a risk to the economy. The growth in consumer spending in the United States is also accounted for by the richest.
The Washington Post
According to Moody's Analytics, the top 10 percent of Americans — those earning $275,000 or more — now account for a record 45% of all spending, up from about 39% before the pandemic. This imbalance helps explain why spending on additional expenses such as eating out and traveling has continued to rise over the past year, even though many households claim to be reducing these costs.
Rising consumer spending has become one of the main drivers of economic growth — it accounts for almost 70% of U.S. GDP, but its concentration among the top 20% of Americans leads to rising inequality. Investments in artificial intelligence turned out to be the driving force behind the growth of investments, and the main beneficiaries of this growth are the "magnificent seven" technology giants Alphabet, Amazon, Apple, Meta Platforms (recognized as extremist and banned in Russia), Microsoft, Nvidia and Tesla. Any drop in the valuations of these companies will affect the net asset value and consumption.
The Economist: gold grows on the depreciation of the dollar and US securities
Against the background of Trump's threats against European allies, the price of gold rose sharply. When he abandoned these threats, the price continued to rise, exceeding the $5,000 per ounce mark for the first time in history. It's not even February yet, and gold has already surpassed many analysts' forecasts for the end of 2026. The asset has become the focus of "depreciation trading," when investors, concerned about the tense geopolitical situation, sell government bonds and dollars, turning to defensive assets. Asian investors are leading the precious metal market.
The Economist
Smart investors are dismissive of precious metals. An asset that does not generate cash flows — and never will — cannot be estimated by the flow of expected future profits, as is the case with stocks or bonds. Assets whose entire value is based on how much someone else can pay for them in the future are a source of understandable concern for prudent portfolio managers.
But assets that provide stability during a period of panic are becoming increasingly difficult to abandon. The share of gold in Western investment portfolios is still negligible. According to the Goldman Sachs bank, this metal accounts for only 0.17% of the total wealth of Americans stored in stocks and bonds. But each 0.01 percentage point increase in this share increases the price of the metal by about 1.4%. And for gold prices to rise further, it is not necessary for Americans to reach the Asian hype level.
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