U.S. Dollar Sags vs. Swiss Franc, Euro Over Tariff Woes

In just one week, the US dollar has gone from a safe haven to a target of investor anxiety, as President Donald Trump's chaotic tariff policies—aimed at both allies and adversaries—undermine decades of trust in the world's reserve currency, Reuters journalists Rae Wee, Kevin Buckland, and Wayne Cole reported.

The US dollar is already on course for its worst year since 2017.

The sudden loss of confidence was most evident in the Treasury market, which saw the largest weekly spike in borrowing costs since 1982 as offshore funds retreated. “The US, almost overnight, seems to have lost its safe-haven attributes,” said Ray Attrill, head of FX strategy at National Australia Bank.

“There is a loss of confidence to some extent. You're overlaying that with the loss of exceptionalism and the view that, in the short term at least, it's the US economy that will suffer the most from the current tariff conflict.”

Already on course for its worst year since 2017, the dollar on Friday plunged to a decade-low against the Swiss franc and hit its weakest level against the euro in more than three years.

“The whole premise of the dollar as a reserve currency is being challenged, effectively, by what we've seen since Trump's election,” Attrill said.

It was the Bretton Woods system, established in 1944, that solidified the greenback’s global dominance. Though the system broke down in the early 1970s, the US dollar remained the cornerstone of international trade—until now, some analysts fear.