Since Liberation Day, global markets have experienced significant shifts driven by trade uncertainty, fiscal risks, geopolitical tensions, and concerns over the US Federal Reserve’s independence. What do these developments mean for the US dollar and global investors?
For now, AI-driven optimism in US equities and the Fed’s cautious stance on rate cuts have supported the dollar as foreign investors continue to favour US assets. However, slowing US growth and political pressure on the Fed could undermine the dollar’s stability. History shows that weaker central bank autonomy often accelerates the dollar’s decline and lifts gold’s safe-haven appeal.
Tune in to this episode of Outlook-in-Five, where our Currency Strategist Sim Moh Siong shares his insights on the fleeting strength of the USD and what these developments mean for the US dollar and global investors.
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