USD Demand Falls To 4 Year Low

USD Demand Falls To 4 Year Low

Wednesday 28th January 2026 – 11:45 (GMT)

USD demand slid to a four-year low after President Donald Trump said he was unconcerned by the currency’s recent weakness. He added that the dollar had not fallen excessively, remarks that did little to reassure markets already attuned to a more tolerant stance from the White House.

Investors interpreted the comments as reinforcing the view that the administration is comfortable with a softer dollar as a means of bolstering US export competitiveness. That perception has been a recurring theme in currency markets, particularly as trade and industrial policy remain central to the president’s economic agenda.

The greenback was further undermined by renewed policy uncertainty in Washington. Mr Trump’s revived threats to assert US control over Greenland, alongside his criticism of the Federal Reserve’s independence, unsettled investors and added to concerns about the coherence of US policymaking. Speculation over a possible joint US-Japan currency intervention to support the yen also weighed on the dollar.

Attention now turns to the Federal Reserve, which is widely expected to leave interest rates unchanged later on Wednesday. Markets will scrutinise any guidance on the outlook for monetary policy, with investors pricing in two quarter-point rate cuts before the end of the year.