The Digester

US dollar hits four-year low after Trump says it is 'doing great'

Mar 18th 2026

The Bloomberg Dollar Spot Index plunged to its lowest since February 2022 after President Trump welcomed a weaker dollar, a move markets saw as a shift from the usual strong dollar stance amid tariff-driven pressure and a stronger yen.

  • Bloomberg Dollar Spot Index posted its biggest one-day drop since April 2025 and fell to its lowest level since February 2022.
  • The sell-off accelerated after President Trump told reporters in Iowa that the dollar is 'doing great' and should 'seek its own level'.
  • Markets interpreted the comments as a break from the traditional strong dollar policy and noted downward pressure since Trump rolled out tariffs in April 2025 alongside a resurgent Japanese yen.
  • A weaker dollar can make US exports more competitive but raise import costs, risk higher inflation, and reduce foreign demand for US assets.