Stephen Jen Quoted in Bloomberg: “Trump’s Embrace of Weaker Dollar Fuels Bets on New Downtrend”
Ruth Carson and Greg Ritchie, Bloomberg, January 28, 2026
In a recent article for Bloomberg, Ruth Carson and Greg Ritchie examine how President Trump’s comments on recent dollar weakness have reinforced investor expectations that the U.S. currency may be entering a new phase of decline.
The article discusses the market reaction to Trump’s remarks, including renewed pressure on the dollar, stronger gains in several major currencies, and increased demand for protection against further dollar weakness in options markets.
Stephen Jen, founder of Eurizon SLJ Capital, is quoted on the possibility that the dollar’s decline may represent more than a short-term move:
“This may very well be the beginning of the next leg lower in the dollar, and many may not be prepared for it,” Jen, a former Morgan Stanley currency strategist who developed the “dollar smile” theory, wrote in a note before Trump spoke. “There has been a generation of currency analysts accustomed to dealing with a strong dollar and a strong US economy, and unable to process the scenario of a weakening dollar and a strong US economy.”
The article places Stephen’s comments in the context of the Trump administration’s apparent comfort with a weaker currency, the dollar’s valuation against major peers, and the broader debate over whether a lower dollar can support U.S. exporters without undermining confidence in U.S. assets.
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