The dollar edged higher on Wednesday after another bout of selling, sparked by comments from Donald Trump indicating he was comfortable with the currency’s recent slide. Meanwhile, technology stocks extended their rally ahead of a closely watched slate of earnings from the sector this week.
Investors are also focused on the Federal Reserve’s latest policy meeting, looking for clues on the future path of interest rates amid lingering uncertainty over the US president’s economic agenda, particularly following renewed tariff threats.
The greenback has weakened broadly this week after reports that the New York Fed had contacted traders to discuss the yen’s exchange rate, fuelling speculation that US and Japanese officials could be considering a coordinated market intervention.
That, in turn, prompted talk that the White House may be willing to tolerate a weaker dollar, a view Trump did little to dispel when asked on Tuesday whether he was concerned about the currency’s decline.
“No, I think it’s great,” he told reporters in Iowa, as the dollar slid to a four-and-a-half-year low against the euro and a two-and-a-half-month low versus the yen. “Look at the business we’re doing. The dollar’s doing great.”
He added: “I want it to be, just seek its own level, which is the fair thing to do.”
The dollar also fell against the pound, South Korean won and Chinese yuan, with Wednesday’s modest rebound doing little to offset recent losses.
Analysts said concerns over Trump’s latest tariff rhetoric including threats aimed at European countries over their opposition to his Greenland ambitions and warnings to Canada over its trade dealings with China, have further undermined confidence in US assets and weighed on the currency.
Adding to the pressure, US consumer confidence slumped to its lowest level since 2014, according to a survey, as households worry about inflation and persistently high living costs.
“Foreign exchange markets typically lead in signalling discomfort with a country’s policies and economic outlook,” said Win Thin of Bank of Nassau 1982 Ltd. “This dollar weakness is something to watch closely.”
Asian equity markets were mixed after the S&P 500 notched another record high overnight, driven by strong gains in heavyweight tech stocks including Apple, Microsoft and Amazon.
Seoul was once again among the standout performers, hitting a fresh all-time high as chipmakers Samsung Electronics and SK hynix rallied.
Markets in Hong Kong, Shanghai, Taipei and Jakarta also posted solid gains, while Tokyo, Sydney, Singapore, Wellington and Manila retreated.
Attention now turns to earnings from several of Wall Street’s “Magnificent Seven,” with Microsoft, Meta, Tesla and Apple all due to report this week.
“These results will offer crucial insight into the direction of the artificial intelligence trade,” said Tony Sycamore, market analyst at IG.
“After losing momentum in the final months of 2025 amid growing scrutiny over returns on investment, capital spending and real-world constraints, investors are keen to see whether the AI narrative can regain traction in 2026.
“Forward guidance will be key, alongside close attention to margins and capital expenditure projections.”
In corporate news, SoftBank surged nearly six per cent after the Wall Street Journal reported the tech investment giant was in talks to inject an additional $30 billion into ChatGPT developer OpenAI.
The move would follow SoftBank’s $22.5 billion investment last month, which secured an 11 per cent stake in the company.
Key figures at around 0230 GMT
- Tokyo – Nikkei 225: DOWN 0.6% at 53,029.97
- Hong Kong – Hang Seng Index: UP 1.5% at 27,541.71
- Shanghai – Composite: UP 0.2% at 4,146.08
- Dollar/yen: UP at 152.89 from 152.32
- Euro/dollar: DOWN at $1.2000 from $1.2035
- Pound/dollar: DOWN at $1.3808 from $1.3833
- Euro/pound: DOWN at 86.90p from 86.98p
- WTI crude: UP 0.2% at $62.52 per barrel
- Brent crude: UP 0.1% at $67.62 per barrel
- New York – Dow: DOWN 0.8% at 49,003.41
- London – FTSE 100: UP 0.6% at 10,207.80
AFP
