Fund managers warn of the state of the US dollar haven

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Fund managers have warned that the US dollar status as a global capital may be subjected to the threat of irregular policies and the rise in commercial barriers.

On Friday, the currency fell to the lowest level of its duration against the euro, and a segment that started last week extends after President Donald Trump announced a “mutual” tariff that is very desperate to American commercial partners.

These moves sparked an alert between investors, who warned of a “tectonic shift” of the global economy if it is no longer to rely on the dollar to provide a shelter during the periods of market fluctuations.

“There (now) is a very good issue for the end of the American Exceptional of the dollar.

For decades, the relative stability of the US economy of the dollar allowed to work as a backup currency in the world – which central banks maintain all over the world.

This allowed the United States to borrow at a low cost and financing the “twin deficit” in the country’s current account and the government budget.

Money managers said that the simultaneous sales process in shares, bonds and dollars in recent days, which the president’s aggressive agenda pays, indicates the loss of American assets among international investors.

“The Trump’s chaotic tariff policy undermines the position of the United States as a safe haven,” said Bert Flossbach, co -founder and head of investment in Philospach von Stores, the largest independent asset manager in Germany.

“There is definitely the possibility that increased uncertainty in politics in the United States will lead to transformations in the use of the dollar in the global economy,” said Brad Sider, a fellow of the Foreign Relations Council.

Edward Fishman, author of the book ” ChokePoints pointsA book on the American economic war said that in addition to the Trump tariff, the president’s threats to the rule of law and the independence of the Federal Reserve may destroy the dollar’s attractiveness.

He expected that over time this could lead to a transformation into a “multiple” system in which currencies, including the euro, play a greater role.

The decline in the dollar is particularly unusual because global financial stress usually enhances the currency, as investors rush to the assets provided by the dollar such as the US Treasury bonds, which are seen as havens.

Economists have also said that the currency of any country has imposed import duties is expected to enhance.

The last sharp step in the returns of government bonds with long frameworks, along with the weakest US dollar, appears to be a “good old capital journey.”

However, economic advisers to the US President confirmed in the past the costs that came with a strong dollar.

Stephen Miran, Chairman of the Economic Chamber of Economists in Trump, argued before the president’s inauguration that placing the dollar as a global backup currency has fell artificially inflated the exchange rate, undermining the global competitiveness of the United States.

Economists have opposed the argument of Miran and raised fears that its area could lead the Trump administration to take more steps to reduce the value of the dollar.

“The more conflict, the more people think, what are the following steps?” Said Michael Crottzburger, Global Executive CEO of Allianz Global Income.