The U.S. dollar slid to a new four-year low after President Donald Trump said he was not concerned about the currency’s decline, accelerating a broad-based rally across global asset markets. The move extended the dollar’s recent weakness and reinforced investor appetite for real and risk assets ahead of a pivotal Federal Reserve policy decision.
The decline in the dollar index marked another leg down after what has already been its worst annual performance since 2017. Currency traders interpreted Trump’s remarks as a signal of continued tolerance for dollar weakness, adding momentum to selling pressure already driven by expectations of easier monetary policy.
As the greenback fell, markets quickly shifted into what investors described as a “risk-on” and “real-asset” trade.
Dollar weakness is fueling asset gains
The dollar’s slide has acted as a powerful tailwind for commodities. Gold jumped roughly 3% on the session, while silver surged about 9%, extending its recent streak of outsized gains. A weaker dollar typically boosts dollar-denominated assets by making them cheaper for non-U.S. buyers and by reinforcing their role as stores of value.
Equity markets also reacted strongly. Futures tied to the S&P 500 climbed above the 7,000 level, signaling expectations of fresh record highs when U.S. markets open. As previously covered, dollar weakness has increasingly been interpreted as supportive for asset prices, particularly when paired with expectations of looser financial conditions.
Investors appear to be betting that policymakers will prioritize growth and market stability over currency strength. Trump’s comments reinforced that perception, encouraging capital to rotate out of cash and into assets that benefit from reflationary dynamics.
What investors are watching next
Attention is now squarely on the Federal Reserve, which is set to announce its latest policy decision later today. Markets are bracing for signals that could validate or challenge the current rally, particularly guidance on interest rates and balance sheet policy.
If the Fed leans dovish, analysts say the dollar could face further downside pressure, potentially extending gains in commodities and equities. Conversely, any indication of concern about financial conditions or inflation could introduce volatility after the sharp moves already seen.
For asset holders, the dollar’s decline has effectively turned into a windfall. Rising prices across metals and equities have boosted portfolio values, reinforcing the view that holding cash is increasingly unattractive in the current environment.
Looking ahead, sustained dollar weakness could reshape global capital flows, support commodity markets, and keep risk assets elevated. Whether this momentum continues will depend heavily on how the Federal Reserve frames its policy outlook and whether political tolerance for a weaker dollar remains intact.