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Date: 16-apr-2025
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April 2025 has brought a sharp downturn for the U.S. dollar, which has dropped more than 4.3% this month alone—its worst two-month performance since 2002. The decline is largely driven by renewed economic uncertainty following a wave of aggressive tariffs introduced by President Donald Trump's administration, aimed at counterbalancing trade imbalances with China and other nations.
While Treasury yields remain high, typically a magnet for global investors, analysts are observing an unexpected shift. Former Treasury Secretary Janet Yellen noted this week that “investors seem to be losing confidence in dollar-denominated assets despite rising returns.”
The fallout isn’t limited to currency markets. A recent Bank of America Global Research survey showed that international fund managers have slashed their U.S. stock holdings at a record pace. A net 36% of managers are now underweight on U.S. equities—an unprecedented shift in sentiment since February.
Adding to the concern, European credit rating agency Scope issued a stark warning that the U.S. could face a rating downgrade if the trade war persists. The agency cited a loss of international trust in the dollar as a global reserve currency and noted that the greenback is experiencing its steepest year-to-date fall in half a century.
With inflation risks still looming and international trade strained, the future of the U.S. dollar remains uncertain. Investors are watching closely as policy developments in Washington continue to drive volatility across markets. For now, the dollar's dominance appears to be facing one of its biggest challenges in recent memory.
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Date: 16-Apr-2025
Explore future business models and trends shaping global companies by 2030 — from AI-driven operations to subscription-based ecosystems.
Date: 16-Apr-2025
Explore future business models and trends shaping global companies by 2030 — from AI-driven operations to subscription-based ecosystems.
