The Dollar Is No Longer a Safe Haven

The escalation of the trade war between the United States and China has led to the U.S. dollar falling to its lowest level since 2022 against the euro, raising questions about the dollar’s loss of its status as a safe haven. This decline reflects a loss of confidence in the U.S. economy due to the economic and trade policies of President Donald Trump

Economic experts believe that the dollar, once considered a safe haven in times of crises, has begun to experience a noticeable decline, as it dropped to its lowest level against the Swiss franc in 10 years and against the euro since 2022. This decline comes at a sensitive time, as the U.S. economy faces significant challenges due to Trump's protectionist policies, such as imposing tariffs on Chinese imports

On the other hand, gold has seen a significant rise, surpassing $3,200 per ounce, driven by the weaker dollar and increasing concerns about a potential global economic recession. This rise reflects the shift of investors toward safe-haven assets amid economic uncertainty

In conclusion, this decline in the value of the dollar points to significant economic challenges that may affect its position as a global reserve currency, warranting close monitoring of upcoming economic and political developments