Strange sell-off in the dollar raises the specter of investors losing trust in the US under Trump

[dalton99a]

https://apnews.com/article/dollar-trump-tariffs-trade-safe-haven-china-c108fd36a3122f85872ad34ba5f5d977

Strange sell-off in the dollar raises the specter of investors losing trust in the US under Trump
By BERNARD CONDON
Updated 5:00 AM CDT, April 18, 2025

NEW YORK (AP) — Among the threats tariffs pose to the U.S. economy, none may be as strange as the sell-off in the dollar.

Currencies rise and fall all the time because of inflation fears, central bank moves and other factors. But economists worry that the recent drop in the dollar is so dramatic that it reflects something more ominous as President Donald Trump tries to reshape global trade: a loss of confidence in the U.S.

The dollar’s dominance in cross-border trade and as a safe haven has been nurtured by administrations of both parties for decades because it helps keep U.S. borrowing costs down and allows Washington to project power abroad — enormous advantages that could possibly disappear if faith in the U.S. was damaged.

“Global trust and reliance on the dollar was built up over a half century or more,” says University of California, Berkeley, economist Barry Eichengreen. “But it can be lost in the blink of an eye.”

Since mid-January, the dollar has fallen 9% against a basket of currencies, a rare and steep decline, to its lowest level in three years.

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[Native]

1. The MAGA population has no freaking clue how bad this will all get. They just think "higher prices" and all they have

to do is wait it out and not buy anything they don't need in the interim. Well, if you lose your job, or your kids lose their jobs, or you just haven't thought about all the things you'll have to buy (car insurance, drugs, etc.) that you can't put off that are all going to go sky high in cost, well - bless your heart.

[jmbar2]

2. Been watching the dollar and bonds a lot lately

Ominous. Could be in for a rough ride.

[Wounded Bear]

3. trump can't be trusted. #ETTD...

We're in for a rough 4 years, hopefully not longer.

[Arazi]

4. There's been a growing move towards dedollarization

Led by BRICS countries (especially Russia) and joined by broligarchs like Musk and Thiel who want to shift towards crypto.

It’s been a very long held goal of Putin’s and now they have a willing Traitor who’s too much of a fool to understand.

If he manages to force out Powell I wouldn’t be surprised to see the dollar fall within a year

[BoRaGard]

5. Klawback Krasnov (R) deemed UNTRUSTWORTHY

Like d'oh

[Johonny]

6. Yet somehow millions of voters

Trusted him. Proving a sucker is born every minute.