Dollar Posts Worst Single-Day Drop Since April 2025 After Trump Endorses Decline

The U.S. dollar index fell 1.5% on January 27, 2026, its steepest one-day decline since April 2025, after former President Donald Trump stated he was "not concerned" about the currency's slide and called the weaker dollar "great." The index hit its lowest level since early 2022. Trump's comments accelerated an existing downtrend, extending the dollar's worst three-day performance since his tariff rollout last April. The decline was also driven by volatility in the Japanese yen following Japan's snap election announcement. Morgan Stanley analysts noted a weaker dollar could boost U.S. exporters but increase costs for American travelers and import-related inflation.