Trump Crushed The Dollar–But The Next Chapter Could Shock Markets

Benzinga

The U.S. dollar jumped 1.8% to 99.4, its best week in a year, as traders unwound heavy short bets. Analysts attribute the rebound to political shifts and global currency moves, not Fed policy, with two rate cuts still expected.

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00:00It's Benzinga bringing Wall Street to Main Street.

00:02The U.S. dollar rebounded sharply this week after months of selling pressure tied to Trump's tariff rhetoric

00:07and expectations for Federal Reserve rate cuts, according to Benzinga.

00:11The dollar index climbed 1.8 percent to 99.4, marking its strongest week since September 2024,

00:17and forcing traders to unwind one of Wall Street's most crowded short bets.

00:20Speculators' bearish positions on dollar index futures hit their deepest level since February 2021,

00:26a point that historically aligns with local bottoms.

00:28Analysts say the rally is being driven by global currency moves and political shifts rather than monetary policy.

00:34The markets still expect two rate cuts by year end.

00:37The dollar surged 3.8 percent against the yen this week after Japan's new prime minister,

00:41Sunei Takachi, seeing a looser fiscal and monetary policy.

00:45For all things money, visit Benzinga.com.

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