TRUMP’S STATEMENTS WEIGH ON DOLLAR AS RECOVERY STALLS

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By: Fasasi Hammad

The dollar struggled to rebound Wednesday following another selloff, triggered by President Donald Trump’s comments expressing satisfaction with the currency’s recent decline. Meanwhile, global equity markets extended their rally, led by tech giants.

Trump’s remarks came amid speculation that the White House might allow the dollar to weaken after the New York Fed reportedly contacted traders about the yen’s exchange rate, fueling talk of a potential US-Japan intervention. When asked about the drop, Trump said in Iowa: “No, I think it’s great… Look at the business we’re doing. The dollar’s doing great. I want it to be, just seek its own level, which is the fair thing to do.”

The greenback fell against the euro, yen, pound, South Korean won, and Chinese yuan, with only a slight recovery Wednesday. Analysts attributed the weakness to uncertainty over Trump’s policies, particularly his latest tariff threats toward Europe and Canada.

US consumer confidence also fell to its lowest level since 2014, reflecting growing concerns about inflation and living costs. Win Thin of Bank of Nassau 1982 Ltd noted: “Foreign exchange typically is the leader in terms of showing market discomfort with a country’s policies and economic outlook, so this dollar weakness bears watching.”

Equity markets, however, performed strongly in Asia. Tech stocks, including Apple, Microsoft, and Amazon, drove the S&P 500 to another record high in New York, helping Seoul reach an all-time peak with gains in Samsung and SK hynix. Tokyo, Hong Kong, Shanghai, Taipei, Manila, Mumbai, and Bangkok also posted gains.

Indonesia’s Jakarta index plunged over 8%—its largest drop in more than nine months—after MSCI raised concerns about shareholding structures and coordinated trading, impacting companies like PT Bumi Resources and PT Petrosea, which fell around 15%. Sydney, Singapore, and Wellington markets saw minor declines.

Investors are now eyeing earnings from Wall Street’s “Magnificent Seven,” including Microsoft, Meta, Tesla, and Apple, for insights into the artificial intelligence trade and future market direction. In corporate news, SoftBank jumped nearly 6% after reports it plans to invest an additional $30 billion in OpenAI, following last month’s $22.5 billion investment for an 11% stake.

Key figures as of 0700 GMT