Dollar Slides to Four-Year Low as Trade Turmoil and Rate Cut Fears Fuel ‘Sell America’ Trade

Summary

The U.S. dollar is sliding sharply, hitting a four-year low despite a relatively strong stock market. The greenback has fallen more than 3% since mid-January, pressured by renewed tariff threats from President Trump, rising risks of a government shutdown, and investor concerns about policy unpredictability. Economists say these factors are undermining confidence in the dollar, prompting investors to move into hard assets like gold, which has surged to record highs.

Trump has signaled comfort with a weaker dollar, fueling speculation that the administration favors depreciation to boost U.S. exports, even as Treasury officials maintain a “strong dollar” stance. Additional uncertainty surrounds the Federal Reserve, as Trump pushes for rate cuts and prepares to nominate a new Fed chair—moves that could further weaken the currency. While the dollar remains the world’s dominant reserve currency, experts warn it could fall another 7–8% in the coming months if political and monetary pressures intensify.