US Dollar and Treasurys Plunge as Investors Abandon American Assets
Trump's erratic tariff policies trigger global sell-off, raising fears over the dollar's reserve status and America's fiscal sustainability.
- The US Dollar Index dropped below 100 for the first time since 2023, hitting a three-year low as investors seek alternative safe-haven assets like gold, the yen, and Swiss francs.
- Treasury yields are rising, signaling falling prices, with the 10-year yield climbing to 4.45%, reflecting a broad retreat from US financial markets.
- Global confidence in the dollar is waning, with analysts warning of potential long-term impacts on its status as the world's leading reserve currency.
- The sell-off highlights concerns over America's ability to sustain high debt levels, as the weakening dollar undermines fiscal flexibility and stability.
- Despite the turmoil, some analysts point to the US market's depth and liquidity as factors that could eventually restore confidence in the dollar.