OREANDA-NEWS   US President Donald Trump said he could make the dollar rise or fall like a yo-yo. He voiced the comparison of the American currency with a popular toy at an election rally in Iowa, the words of the head of state are quoted by Bloomberg.

The American leader commented on the sharp drop in the US currency and assured that "everything is fine" with the dollar.

"I could make it rise or fall like a yo-yo," he stressed.

Trump also expressed the hope that the dollar had simply found its own level, and rightly so.

As Bloomberg notes, the recent weakening of the dollar is due to the expectation of further interest rate cuts by the Federal Reserve, uncertainty about tariffs, and the instability of the current president's policy, including threats to the Fed's independence and a growing budget deficit. All this has undermined investors' confidence in the stability of the country's economy.

"Many in the Trump cabinet want the dollar to weaken in order to make exports more competitive. They're taking calculated risks. A weaker currency can be useful until the situation gets out of control," said Win Tin, chief economist at Bank of Nassau.

Trump's comments added fuel to the fire and pushed the currency to fall further. After his speech, the Bloomberg dollar index lost another 1.2 percent, and the US currency weakened against all major currencies. Traders have already placed record bets on the collapse of the US dollar. The premium for short-term options, which generate profits due to the weakening of the US currency, has reached its highest level since Bloomberg began collecting this data in 2011. Against the background of a sharp weakening of the currency, experts predict that the dollar may reach its lowest level in the last four years.