U.S. dollar hits four-year low

The U.S. president’s recent comment weighed on the currency, which had come under pressure in recent sessions

The U.S. dollar extended losses to sink to a four-year low against a range of currencies on Tuesday, ​after President Donald Trump said the value of the dollar is “great” when asked whether he thought it had dropped too much.

Trump made the comment to ‌reporters in Iowa (U.S.) ahead of a speech expected to centre on the economy, as he seeks to rally his stalwart rural supporters in a state that hosts key congressional races in November.

The comment weighed on the country’s currency, which had come under pressure in recent sessions.

Trump’s remark signals to the market that the U.S. would prefer a weaker dollar, said Marc Chandler, chief market strategist at Bannockburn Capital Markets.

The market is happy to give it to them, he said.

The dollar’s recent weakness stems from ‌several factors including Trump’s policymaking and concerns about central bank independence, analysts said.

In addition, disagreement between Republicans and Democrats over funding for the Department ​of Homeland Security has raised concerns of another U.S. government shutdown.

The country’s president accused South Korea’s legislature of “not living up” to its trade deal with Washington, and said late on Monday he would increase tariffs on imports from Asia’s fourth-biggest economy into the U.S. such as autos, lumber and ‍pharmaceuticals to 25%.

The president has also in recent days said he would impose a 100% tariff on Canada if it follows through on a trade deal with China.

We’ve already had some very sizable moves in the last few days. Trump’s comment on the dollar put gasoline on an already existing fire, Bannockburn’s Chandler said.