Overview

• The U.S. dollar has fallen 9% since mid-January, reaching its lowest level in three years, driven by market concerns tied to recent tariff policies.
• Economists warn that the decline may signal a loss of global trust in the U.S. economy, with some citing a potential erosion of the dollar's safe-haven status.
• China continues to challenge dollar dominance by expanding yuan-only trade agreements and offering yuan-based loans to central banks in cash-strapped nations.
• Critics argue that President Trump's threats to Federal Reserve independence and unpredictable trade measures have further destabilized market confidence.
• Defenders of the dollar emphasize its long-term appreciation, liquidity, and the strength of U.S. institutions, asserting no viable alternative currently exists.