Trump’s Embrace of Weaker Dollar Fuels Bets on New Downtrend (1)

President Donald Trump’s relaxed tone about the dollar selloff is fueling speculation the US currency is at the start of a longer-term decline.

The dollar suffered its deepest one-day drop since last year’s tariff rollout after Trump said on Tuesday he didn’t think the currency had weakened excessively. Bloomberg’s dollar gauge slid as much as 1.2% as the comments sapped the appeal of the greenback and US Treasuries — boosting what has become known as the debasement trade.

For Stephen Jen, founder of Eurizon SLJ Capital, the Trump administration’s view of the dollar marks the start of a ...