Investors Are Bracing for a New Downtrend in the Dollar

Asia woke up to a knee-jerk selloff in the dollar after Donald Trump’s relaxed comments about the greenback. Quick recap: the US President said he isn’t concerned about a decline in the currency, saying it was “doing great.”

But as the day progressed, it became clear that the tone he has set is fueling speculation the US currency is at the start of a longer-term decline. The dollar suffered its deepest one-day drop since last year’s tariff rollout. Bloomberg’s dollar gauge slid as much as 1.2% as the comments sapped the appeal of the greenback and US Treasuries — boosting what has become known as the debasement trade.