Greenback under pressure as Trump backs weaker dollar
By Abigail Townsend
Date: Wednesday 28 Jan 2026
(Sharecast News) - The dollar remained under pressure on Wednesday, while gold once again breached fresh records, as the Trump administration's erratic policies continued to weigh heavily on markets.
The greenback sank to a four-year low on Tuesday, and continued to ease on Wednesday against a basket of currencies, dipping 0.2% in early trading. It has now shed 2.6% since the start of this year alone.
In stark contrast, safe haven gold has put on 20% in 2026, with prices breaching $5,300 per troy ounce for the first time early on Wednesday. Prices initially reached $5,311.31 before paring back gains as the session went on.
Also on the ascendant was the Swiss franc. It hit its highest level against the dollar in more than decade, as traders sought out more reliable currencies.
Tuesday's slide in the dollar, to its lowest level since February 2022, was the largest one-day drop since April 2025, when the US president unveiled his swingeing tariff regime, upending global markets.
Asked if he was concerned about the most recent fall, however, Trump backed a weaker greenback, telling reporters: "No, I think it's great.
"Look at the value of the dollar. Look at the business we are doing. The dollar is, the dollar is doing great."
Russ Mould, investment director at AJ Bell, said: "A weaker US currency is a headwind for the large contingent in the FTSE 100 which derive their revenue from across the Atlantic - although it continues to provide support to dollar-denominated gold.
"At this rate, gold bugs will by eying the $6,000 mark before the end of the year."
Kathleen Brooks, research director at XTB, said: "The sell-off in the greenback was turbo-charged after Tump explicitly said he supported a weaker currency, which suggests that the dollar could fall further regardless of what the Federal Reserve does.
"The dollar debasement trade is also linked to the challenge to Fed independence; [chair] Jerome Powell made it clear that pressures from the White House to lower interest rates was unacceptable."
Rabobank said: "A loss of Fed independence was, and still is, a major concern of dollar investors. Added to this are fears regarding US debasement, which are anchored in concerns that a lack of fiscal prudence by the current administration would trigger a mass exit from US treasuries and an associated decline in the value of the greenback."
The Fed is due to announce its latest decision on the cost of borrowing later on Wednesday. It is widely expected to leave rates on hold, despite pressure from Trump to cut.
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