Trump compared the dollar exchange rate with yo-yo amid a large-scale collapse of the currency

On January 27, US President Donald Trump said he was not concerned about the depreciation of the dollar, which reached a four-year low, and compared the currency's behavior to a yo-yo toy.

"I could make him rise or fall like a yo-yo. <...> I want him to just find his own level, and that would be fair," Trump told reporters at a campaign rally in Iowa, quoted by Bloomberg.

When asked if the US president was concerned about the sharp drop in the national currency to the lowest since 2022, Trump replied that everything was "fine" with the dollar.

"Look at the kind of business we do. The dollar feels great," he concluded.

Meanwhile, according to Bloomberg, the dollar index tracked by the agency fell to 1.2% amid Trump's comments. Stephen Jen, the founder of the Eurizon SLJ Capital investment company, admitted that the words of the American president speak about the upcoming new decline in the dollar.

Among the reasons for the collapse of the currency, the agency highlights the unpredictable policy of the White House, in particular, attempts to annex Greenland and pressure on the Federal Reserve System (FRS), which performs the functions of the central bank.

A hitch in favor of the yuan: a new cryptocurrency crisis has emerged in the United States

American banks are blocking the development of stablecoins in fear of competition from the new mechanism.

Bloomberg reported on January 27 that traders have been making record bets on options since 2011 on the collapse of the US dollar amid the introduction of new trade tariffs. Earlier, Reuters reported that financial markets reacted sharply to renewed concerns about a potential trade war between the United States and the European Union (EU), which intensified amid the dispute over Greenland. Against this background, investors began to withdraw from risky assets.

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