The US dollar’s status as a safe-haven currency remains intact despite recent market volatility. Since Donald Trump returned to the White House, investors have grown accustomed to unexpected economic shocks. Even major announcements, such as tariffs on copper or the European Union, no longer elicit strong reactions.
A rare exception occurred on July 16th when Trump considered replacing Federal Reserve Chair Jerome Powell. However, this move was met with relatively muted market responses, resulting in a surge in Treasury yields and a decline in the dollar’s value. Ultimately, Trump reversed his decision, and markets rebounded with all-time highs the following day.
The latest economic data shows that Americans are still able to secure 2% mortgages despite high interest rates. Additionally, stablecoins could potentially reduce America’s debt payments at a future cost. The Trump administration is also open to any economic assistance it can receive.
In other news, industries such as electronics and pharmaceuticals may face significant tariffs under the new trade policies. However, these levies have brought mixed results for the US economy, including increased costs and reduced exports.
Source: https://www.economist.com/finance-and-economics/2025/07/20/how-far-off-is-dollar-doom