The US is once again succumbing to anti-dollar drives. The de-dollarization agenda is once again gaining momentum, with President Donald Trump as the catalyst. Since the president of the US assumed his official duties in January, the dollar has plunged to new lows, encountering new price depths. At the same time, his fierce tariff policies and strong opinions have started to affect investor confidence, compelling foreign investments to decrease at a rapid pace.

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Trump’s Policies Are “Shooing” Investors Away

A recent Bloomberg report outlined how Donald Trump is spearheading de-dollarization more than any other factor at the moment. The US president has rattled its allies through consistent tariff hikes, pushing them further away. Alongside that, Trump’s persistent push for rate cuts, as well as his tactics to pursue legal paths for those who oppose his opinions, have taken a toll on the US dollar’s global repute. As a result, the world now wants to maintain a safe distance, with foreign investors moving away from the US dollar.

“Trump is definitely playing with fire,“ says Stephen Miller, a consultant for GSFM, a unit of Canada’s CI Financial Corp. in Australia.

Per the report, the US president’s desire for a weaker dollar to bolster US manufacturing seems to be a key marker for this stark investor confidence pivot.

“They might be very, very successful in doing it, but that could be very, very uncomfortable” — to the point, he says, that they “lose control of that process.”

Repatriation Of Funds On Cards Now?

The report further stated how the constant US dollar devaluation and fall could trigger a “loop of issues.” This loop can compel investors to repatriate their funds, driving up the compound costs.

At the same time, the current investor pivot could end up favouring alternatives such as gold and Bitcoin that have rallied significantly this year. This phenomenon is also spurring the de-dollarization narrative aggressively ahead.

In addition to this, Bloomberg’s Paul Tudor Jones of macro-hedge fund investing, stated how the US dollar may fall 10% over the next 10 months. The fall may ultimately influence the investor sentiment again, ushering in de-dollarization in full swing.

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