Bessent:“the US always has a strong dollar policy.”

US Dollar Falls Again as Debasement Fears Outweigh Bessent’s Boost

The dollar fell, 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.

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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.

Bessent had offered support for the sinking greenback Wednesday, saying “the US always has a strong dollar policy.” “Bessent is employing a bit of strategic ambiguity,” 

The debasement trade is a bet on a long-term decline in the dollar’s purchasing power due to concerns over unpredictable US policy making, unsustainably large deficits and increasing US isolation.

Bloomberg 29 January 2026

https://www.bloomberg.com/news/articles/2026-01-29/dollar-falls-again-as-debasement-fears-outweigh-bessent-s-boost


Gundlach

https://englundmacro.blogspot.com/search?q=gundlach


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