"Trump's Weak Dollar Comments Created a Downturn Expectation in the Markets"

Dollar's Depreciation and Market Reactions

Former US President **Donald Trump** stated that the dollar has not depreciated excessively, causing significant fluctuations in the markets. This statement led to a **1.2% drop in the Bloomberg Dollar Index**, resulting in the dollar experiencing its largest daily depreciation of 2023.

Expert Opinions

**Stephen Jen**, founder of **Eurizon SLJ Capital**, suggested that with the dollar exchange rate targeting supporting US exporters under the Trump administration, a downward trend for the dollar could begin. In this context, he emphasized that investors should be prepared for potential new waves of decline in the market.

International Market Effects

After reaching its lowest level in four years on the New York stock exchange, the **Bloomberg Dollar Index** slightly recovered in the Asian markets. Notably, the euro/dollar parity rose to 1.20, marking its highest level since 2021. The depreciation of the dollar has helped the **British Pound** reach its strongest levels since 2021, while the **Swiss Franc** also hit its highest value since 2015.

Strengthening Local Currencies

In Asia, the **Malaysian Ringgit** and **Taiwan Dollar** were the currencies that gained the most value against the US Dollar. This situation can be interpreted as a sign of strengthening local economies and investors' tendencies to move away from the dollar.

Market Expectations and Economic Risks

**Anthony Doyle**, an investment strategist from **Sydney Pinnacle Investment Management**, indicated that new questions have arisen regarding whether the US will accept a lower standard of stability. Trump's indifference towards the dollar has generated significant concerns among investors, being viewed as a signal to divest assets like Treasury bonds.

Expert Opinions and Economic Balance

**Robert Kaplan**, Vice President of **Goldman Sachs** and former **Dallas Fed** President, stated at a conference held in Hong Kong that the weakening of the dollar poses serious risks to the US economy. Kaplan remarked, "A weaker dollar could boost exports. However, with the US debt exceeding 39 trillion dollars, the stability of the currency is more important than exports."