By Africa Hotspot Business Correspondent
NEW YORK – The U.S. dollar faced a brutal “crisis of confidence” on Wednesday, January 28, 2026, plunging to its lowest level in nearly four years. The latest downward spiral was triggered by President Donald Trump, who stunned financial markets by brushing off the currency’s recent weakness, effectively giving global traders a “green light” to continue dumping the greenback.
Speaking to reporters in Iowa on Tuesday, President Trump was asked if he was concerned that the dollar had declined too much. “No, I think it’s great,” he responded. “Look at the business we’re doing. The dollar’s doing great. I want it to just seek its own level, which is the fair thing to do.”
These remarks sent the U.S. Dollar Index (DXY) tumbling more than 1%, crashing through key support levels to hit a low of 95.56—a level not seen since early 2022.
A “Sell America” Fever
The President’s comments have exacerbated what analysts are calling a “Sell America” trade. Investors are increasingly rattled by a combination of erratic trade policies—including recent 100% tariff threats against Canada and the pursuit of Greenland—and a massive expansion of the national debt.
The dollar’s retreat has provided a massive boost to rival currencies, with the Euro surging past the $1.20 mark and the Japanese Yen hitting a two-month high.
“Traders took the President’s words as a clear signal that the administration favors a weaker dollar to boost manufacturing and exports,” said one senior market analyst. “While a lower currency helps exporters, it also signals a waning faith in U.S. assets as a stable store of value.”
Fed Independence Under Fire
The currency’s collapse comes at a critical moment for the Federal Reserve, which is scheduled to deliver a policy decision later today. While Fed Chair Jerome Powell has attempted to maintain a cautious tone, he is facing unprecedented pressure from the White House for deeper interest rate cuts.
With Powell set to step down in May, markets are already pricing in a more “dovish” successor who may prioritize the President’s desire for lower rates over inflation control.
As the greenback languishes, investors are fleeing to safe-haven assets. Gold has soared past the historic $5,200 mark for the first time, reflecting a global scramble for stability in an era of unprecedented U.S. policy volatility.
