Overview

• The US dollar has reached its lowest value since 2023, extending a year-to-date decline of over 7%.
• Moody's recently downgraded the US credit rating, citing growing fiscal deficits and rising government debt costs.
• President Trump's renewed tariff threats, including potential increases on EU imports, have heightened market concerns about recession risks and economic uncertainty.
• Jefferies and other financial analysts predict a long-term weakening of the dollar, partly due to political unpredictability and structural fiscal challenges.
• Gold has emerged as a preferred safe-haven asset, with alternatives like the euro, yen, and cryptocurrencies seen as inadequate replacements for the dollar's reserve status.