President Donald Trump stated that he does not believe the US dollar has depreciated excessively, describing its performance as "great" and noting that exchange rates are inherently volatile.

"No, I think it's great," Trump responded to media inquiries in Iowa on Tuesday when asked if he was concerned about the dollar's decline, adding, "I think the dollar is—look at what we're doing. The dollar is doing great."

The US dollar, serving as the world's primary reserve currency, has fallen to its lowest level in nearly four years.

"I would like it to—just find its place, and it will do that," Trump further commented.

The Bloomberg Dollar Spot Index has recorded its most significant four-day decline since he announced comprehensive tariffs in April of last year. Following Trump's remarks, the index dropped to its daily low.

The dollar's weakness has also provided a boost to other currencies, with the Japanese yen staging a strong rebound.

Trump also hinted on Tuesday that he has the ability to manipulate the dollar's strength, stating, "I could make it go up and down like a yo-yo." However, he cautioned that such actions would yield no positive outcome, likening it to hiring unnecessary workers to artificially improve employment data. He also criticized two major Asian economies, specifically alleging that Japan attempts to suppress its own currency.

"Look at Japan. I used to fight with them like crazy because they would always devalue. You know? They devalue. They devalue, devalue, devalue," Trump said.

"I said, 'It's not fair for you to devalue because we can't compete.' But they're always fighting. No, our dollar is great," Trump continued.