Why gold and the Swiss franc suddenly look more attractive than the dollar

It’s been a dramatic week in foreign exchange markets as a six-word comment on Tuesday by President Donald Trump intensified a selloff for the U.S. dollar, sending it to its lowest level in four years.

On Wednesday, Treasury Secretary Scott Bessent sought to do some damage control. It doesn’t appear to be working yet.

Understanding what’s happening with the dollar now traces back to early 2025, when the greenback hit a multi-year high relative to other currencies just days before Trump’s return to the White House.