A $1.7 trillion asset manager is flipping bearish on the US dollar, warning Trump’s push to revitalize America’s industries by increasing tariffs is eroding the USD’s dominance.
Analysts at bond giant Pacific Investment Management Company (PIMCO) say in an investment note that President Trump’s trade war has triggered uncertainty about the status of the dollar and US Treasuries as safe-haven assets, reports Reuters.
The PIMCO market strategists say that investors are now questioning whether US assets will remain the anchor of the global financial system amid Trump’s abrupt policy shift that his administration claims will bring manufacturing jobs back to America.
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“The US has long enjoyed a privileged position, with the dollar serving as the global reserve currency and Treasuries as the go-to reserve asset.
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