Next up for markets: a crisis of confidence in the dollar

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London: Investors run away to protect the dollar when market panic, but when the stock was ready this week in response to US revenue, they fled. Investors say it is a sign that Greenback can stand globally.

After President Donald Trump imposed taxes on imports at the early 1900s, a safe haven on Thursday, a safe haven, in a safe haven, a safe haven, dollars, dollars, dollars. The stock markets also took a tank, as the prices incited the problem of recession.

In the comments in interviews and published markets, many investors and analysts pointed to the Trump administration for irregularities. He says its protection policies, since World War II, have been eliminating global economic discipline, and the growing piles of US debt has been ending on the dollar’s appeal.

He added that without any scrutiny, the dollar confidence crisis could also damage its status as a world reserve currency.

“What we are seeing today is that the US dollar’s global markets have changed the structure and nature of the US dollar relations,” said Three Wezman, a global foreign exchange and rate strategic, in New York, New York.

“It is the main basis, which is the changing role of the United States in the world.”

At least in a near near-near-closer period-dollar, any kind of cutting is bad news for investors and policy makers.

For investors, who have piled up trillions of dollars in recent decades, can increase the interest rate in the dollar. The reason for this is that pricing at home can make it difficult for the federal reserve to reduce the rates.

At the same time, the currencies against the dollar have a headache on a weak economic approach to other central banks, as it makes their exports more expensive and more difficult to restore their exports. For example, the euro had its best day against Greenback for more than two years.

Sweden’s Central Bank Deputy Governor Pa Johnson said at a program in London on Tuesday that the recent deprivation of the dollar showed that the currency’s status was “already in the financial markets”.

He then told Reuters, “If (dollar status) changes, it will be a major change for the global economy … and will basically create a mess.” “I really do not expect America to go there.”

The White House Press Office did not immediately respond to a request for comment.

To ensure, despite such growing problems, the dollar is still in a position to be firmly in the world as the world’s high reserve currency. Trump has said he wants to maintain that position and warn him against efforts to weaken it, while pointing to a weak dollar would be good for exports.

The currency also has a hereditary competitive advantage: its support is the world’s largest economy, a deepening capital markets and a established rule of law. There is no real alternative in the near term. In addition, this year its decline has declined by about 6.0 % in the dollar against other big currencies-if the Trump can succeed in changing emotions on the economy through tax deduction and unprecedented policies.

Although US appeal as an investment destination has been reduced, the dollar course will determine how the US economy responds to the Trump tariff shock. In addition, more profit on US bonds is still important for investors than other government bonds, he said.

Follow the money

Nevertheless, it is noteworthy to be reversed. On the year, investors expected that Trump’s prices would rise in the dollar, as he believed his policies would promote growth.

So when investors expected them to expect inflation, it was unanimous that it would cause more trouble to the economies abroad, while causing high rates at home, which would strengthen the currency. This is wrong. Its prices are so clear that investors now fear that the United States will suffer the most because the house is facing the rise in prices and the slowdown of growth. Several investment banks have increased the possibility that they are of US recession.

Negative emotions are flowing in the United States, thus reducing the demand for dollars. US US data suggests that foreign assets of foreign assets were $ 62 trillion in 2024, which was $ 13 trillion a decade ago when international investors perform US stocks, bonds and real estate.

But with an indicator, the money is going from US assets to overseas markets, so far US stocks have fallen by 8.0 %, while German and Hong Kong shares have increased by about 12 12 %.

And the United States can deepen as an investment destination. President Emmanuel Macron on Thursday called on European companies to suspend planned investment in the United States in response to the blocks imposed on the block.

The largest European Asset Manager, Director of Fixed Income and Currency Strategy in Amandi, said, “Three pillars of cooperation that help with US immunity, high interest rates, and strong portfolio flow. The three have been weighed down as a result of tariffs, as a result of the decoration of the tariffs. Currency strategy director Paresh Upadhya said.

Earlier this week, the Deutsche Bank warned of the threat of a US currency confidence crisis, while Bond’s Dev Pimco said he had become more cautious on the dollar.

Matt King, the founder of Saturi Institutes, said the possibility of withdrawal from the United States would continue.

He said, “It has the potential to run significantly more, partially because of the severity of positions (US equity and dollar), which has been developed during the extended period, and the possibility of this driving is a constant cycle of self -sustained losses.

As a result, the future of a currency is often called ‘King Dollar’ for its power and dominance in the global forex markets, suddenly suddenly seems uncertain.

James Malcolm, head of the FX strategy in UBS, said he saw the current situation and the plaza agreement between the mid -1980s, when economically well -performing Americans pressured major partners to help us weaken the dollar.

“While we get a different combination of events, the effect-dollar should be much less-one should be like.” The Trump administration can emphasize through the ‘Mar-Laun Lagg Agreement’-which is a great deal to weaken the high price dollar-it has achieved traction even if it is unlikely. More widely, the weapon of finance, including the dollar, is a growing concern among some in Europe.

“This extraordinary treatment is a threat,” said Antonio Fatas, Macro Economic, France’s Incede Business School. “The problem is that we do not have a dollar alternative – and that’s why it’s going to be painful. I don’t think anyone wins in a short period of time.”