Dollar Falls to Lowest Since 2022

Dollar's Status and Value - The dollar is a reserve currency due to its store of value and usefulness in trade and financial markets, providing the U S with privileges like lower borrowing costs and increased borrowing capacity [1] - The dollar is unlikely to lose its reserve currency status in the next 5-10 years due to the lack of a viable alternative [2] - A dominant reserve currency's value can fluctuate, and the dollar may be in a period of trending down against various currencies [3] Gold as a Reserve Asset - Central banks' purchases of gold are significant and have been increasing [5] - Gold is considered an investment because it doesn't default, a factor that some investors value even more than inflation-indexed securities [6] - Central banks have historically held gold as a reserve for hundreds of years, and there's a return to that mindset [6][7] Tariffs and Trade - Tariffs of the current scale and scope in the U S haven't been seen in decades and have broad economic implications [9] - Tariffs generate revenue for the government, divert some trade into the U S, and onshore some investment [10] - Modeling the effects of tariffs at the current level, such as 10%, is a complex exercise [10]