Market News

(Bloomberg) -- The dollar weakened, halting Wednesday’s bounce, as the return of the so-called debasement trade outweighed Treasury Secretary Scott Bessent’s affirmation of the strong-greenback policy.

Bloomberg’s gauge of the US currency slipped 0.3%, while precious metals such as gold and silver extended their record-breaking rallies. The dollar hasn’t acted like a haven currency for a while as investors prefer tangible havens such as precious metals, DoubleLine Capital chief executive officer Jeffrey Gundlach said in an interview with CNBC.

Bessent had offered support for the sinking greenback Wednesday, saying “the US always has a strong dollar policy.” His comments came after President Donald Trump fueled a selloff in the currency the day before when he suggested he’s comfortable with the dollar’s decline as it was good for US businesses.

 
“Bessent is employing a bit of strategic ambiguity” in his dollar comments, said Damien Loh, chief investment officer at Ericsenz Capital. “A full-fledged weak dollar policy as espoused by Trump initially could take on a life of its own and get out of control, so he was looking to temper that, although I still think they want a gradual dollar weakening.”