Recent market volatility has highlighted concerns about the U.S. dollar’s status as both a safe-haven asset and global reserve currency.
Following President Trump’s April 2 tariff announcements, traditional market correlations have broken down, with the dollar falling to a three-year low while other safe-haven currencies like the Swiss franc and Japanese yen strengthened.
Analysts suggest Trump’s aggressive trade policies are undermining a financial system that the U.S. previously championed.
Though any shift away from dollar dominance won’t happen immediately due to its entrenched role in global transactions, experts believe the current trajectory could lead to higher borrowing costs for Americans and continued dollar weakness.