Overview
- The greenback is down more than 10% since President Trump returned to office, with a fresh slide linked to fallout from the Greenland crisis.
- Gold has climbed nearly 80% over the past year as investors seek safety from currency volatility.
- Foreign portfolios are shifting toward currency-hedged U.S. exposure and stronger non‑U.S. markets, with hedging flows themselves pressuring the dollar, analysts say.
- Trump continues to press the Federal Reserve for steep rate cuts and has nominated Kevin Warsh as chair, a combination economists warn could further weigh on the currency.
- Persistent deficits and rising interest costs have raised sustainability concerns, even as some governments expand non‑dollar settlement channels and global central banks still hold about $7.4 trillion in dollar reserves.