Business · Markets · 2 hrs ago
Wall Street gains help lift the dollar, complicating Trump’s push for a weaker currency
The US dollar has strengthened after losing ground earlier this year, reaching its strongest level against the euro in 17 months.
The rebound has been helped by overseas investors putting money into US markets, especially technology shares linked to artificial intelligence.
Foreign private investors bought far more US shares than Treasury bonds in the 12 months through July.
Higher yields on US government bonds have also attracted buyers, including strong demand at a recent 10-year bond auction.
The dollar is still about 7% below where it was when Donald Trump returned to the White House in January 2025.
Trump has said a weaker dollar can help US exports and production, so a lasting rise in the currency could work against that goal.
The sources do not say whether the dollar’s gains will continue.
The dollar has strengthened as foreign investors have poured money into US stocks, complicating President Donald Trump’s preference for a weaker currency.
This week, the dollar rose to nearly 90 euro cents, its strongest level against the euro in 17 months.
The Nasdaq has reached new highs, while major technology companies have attracted investment linked to artificial intelligence.
Foreign private investors bought about $802.3 billion net in US shares in the 12 months through July, compared with $263.4 billion in Treasury bonds and notes.
Trump has argued that a weaker dollar can support US competitiveness and production.
- Who
- The US dollar, foreign investors and President Donald Trump.
- What
- The dollar has strengthened, partly as foreign investment flows into US stocks. This may conflict with Trump’s preference for a weaker currency.
- When
- The dollar reached its strongest level against the euro in 17 months during the week before the article was published on October 12, 2026.
- Where
- The United States and currency markets, particularly the dollar-euro exchange rate.
- Why
- Foreign investors have been buying US shares, especially technology stocks, while higher Treasury yields have also attracted buyers.
President Donald Trump
Foreign investors buying US assets
Currency policy
President Donald Trump
Trump has defended a weaker dollar to improve external competitiveness and support US production.
Foreign investors buying US assets
Foreign investors have been buying US stocks, helping lift demand for the dollar.
great
Trump returned to the White House when the dollar bought around 96 euro cents.
Foreign private investors bought about $802.3 billion net in US shares and $263.4 billion in Treasury bonds and notes.
The dollar rose to nearly 90 euro cents, its strongest level against the euro in 17 months.
- Dollar exchange rate
- Nearly 90 euro cents this week
- Euro exchange rate
- One euro at $1.1161
- Ten-year Treasury yield
- Above 5%, reaching more than 5.3% this week
- Treasury auction bid-to-cover ratio
- 2.77, the highest since 2014
- Foreign net purchases of US shares
- About $802.3 billion in the 12 months through July
- Foreign net purchases of Treasury bonds and notes
- $263.4 billion in the 12 months through July
Sources
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