**FXnCO Breaking News**
The US Dollar’s traditional safe-haven status is under fresh scrutiny after April 2025 tariffs failed to trigger the expected flight to safety, according to Rabobank Senior FX Strategist Jane Foley. The unusual market response has accelerated discussions around structural de-dollarisation trends that could reshape currency markets long-term.
Foley’s analysis highlights a critical divergence between cyclical Dollar movements and deeper structural shifts as global investors increasingly question the greenback’s defensive appeal during geopolitical and trade tensions. The tariff episode marked a notable departure from historical patterns where Treasury bonds and the Dollar typically attract safe-haven flows during uncertainty.
Traders, brokers, and institutional currency desks should monitor whether this represents a temporary anomaly or signals weakening Dollar dominance in global reserve allocations. The development carries significant implications for FX positioning strategies and hedging assumptions that have long relied on Dollar strength during risk-off episodes.
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FXnCO Insight
** Currency professionals should reassess safe-haven playbooks and consider reducing automatic Dollar-long positioning during geopolitical events until clearer evidence emerges about whether de-dollarisation is fundamentally altering traditional market dynamics.
Source: FXStreet