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US Dollar Tumbles: Safe Haven Status Tested
5 Feb
Summary
- US dollar has fallen 11% from its January 2025 peak.
- Unpredictable policies have dented the dollar's safe haven reputation.
- Investor diversification from the dollar has boosted gold and silver.
The US dollar's value has seen a notable decrease, with current declines on a similar trajectory to those observed during President Trump's initial term. As of February 5, 2026, the dollar has fallen 11% from its January 2025 peak. This weakening trend is partly attributed to unpredictable policy decisions, which have eroded its traditional reputation as a safe haven asset.
However, the dollar retains a yield advantage over many other major currencies, providing a degree of support. Global geopolitical tensions have also played a significant role, causing investors to diversify their holdings away from the dollar and into assets like gold and silver, further pressuring its value.
