The U.S. dollar fell to its weakest level in nearly four years on Tuesday, as a recovering Japanese yen added further pressure on the American currency.
The Bloomberg Dollar Spot Index dropped by as much as 0.4% to its lowest level since March 2022, extending losses for a fourth consecutive session. The decline follows the dollar’s worst weekly performance since May.
The latest downturn came amid signs of U.S. support for strengthening the struggling yen, reviving debate over the possibility of coordinated intervention in currency markets to push the dollar lower against major trading partners.
The dollar’s weakness also reflects growing investor caution following a series of unpredictable policy moves in Washington, including U.S. President Donald Trump’s threats to take control of Greenland. Over the longer term, concerns over the independence of the Federal Reserve, a widening budget deficit, fears of fiscal overspending, and deepening political polarization have all weighed on the dollar.
