U.S. dollar declines, losing its safe-haven status

The U.S. dollar has recently dropped significantly, failing to act as a safe haven amid rising global political and market tensions. This decline contrasts with past behavior, where the dollar typically rises during times of stress. The dollar's fall is linked to lower U.S. interest rates and economic concerns, as well as new trade tariffs that have weakened regional currencies. Meanwhile, the euro and yen have gained strength, indicating that global investors are seeking alternatives to the dollar. Analysts note a shift in market behavior, with the dollar's safe-haven status being challenged. This change may reflect a broader reassessment of America's role in global economics and politics, as European nations consider increased defense spending.