The dollar was poised for a third weekly gain on Friday after positive U.S. economic data reduced expectations of an upcoming rate cut by the Federal Reserve.
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The dollar is in a bear market, market watchers said Wednesday, with one warning that the greenback’s weakness was a “double-edged sword” for the U.S. economy.
Tuesday saw the dollar suffer its worst one-day fall since April – when Trump’s so-called “liberation day” announcements triggered what became known as sell America trade. The decline came after the president told reporters in Iowa that he thought the dollar was “doing very well.”
THE US Dollar Indexwhich measures the greenback against a basket of its main rivals, has lost 2.2% so far this year, after falling more than 9% in 2025.
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Dollar Index
Trump has long touted the benefits of a devalued U.S. dollar for international trade, and openly castigated countries that intervene in the foreign exchange markets to lower the value of their own currency in relation to the greenback.
“It doesn’t look good, but you make a lot more money with a weaker dollar… than you do with a strong dollar,” he said.