The Dollar's Decline: Trade Policies and Investor Reactions

This chapter examines the surprising drop in the dollar's value driven by the Trump administration's trade policies, which have prompted investors to reassess their confidence in the currency. It highlights the implications of a declining dollar for currency hedging strategies, particularly the increased investment in euros as a safety measure. The discussion also considers the broader economic concerns associated with U.S. fiscal policies and their potential effects on inflation and competitiveness in the global market.