Dollar Sell-off Sparks Global Confidence Crisis Under Trump

A dramatic 9% decline in the U.S. dollar since mid-January has alarmed economists, who say the unusual sell-off signals a potential loss of global confidence in the U.S. as President Trump implements new tariffs and trade policies. Traditionally, the dollar acts as a safe haven during global uncertainty, but this time it has weakened, puzzling analysts and suggesting deeper concerns about U.S. economic stability and leadership. The dollar's dominance enables low borrowing costs and global influence, benefits now at risk if trust continues to erode. The sell-off has been accompanied by stock and bond market turmoil, with some experts warning that the U.S. could lose its 'exorbitant privilege' as the world's reserve currency. This scenario could lead to higher borrowing costs, rising inflation, and a shift away from U.S.-centered financial systems. Overall, the dollar's fall highlights investor anxiety about America's economic direction and the potential for lasting damage to its global financial standing.