Core Viewpoint - The article highlights the weakening of the US dollar, attributed to the erratic trade policies of the Trump administration and growing concerns over the US fiscal situation, leading to a crisis of market confidence [1][5]. Group 1: Dollar Performance - The US dollar index is expected to decline by 0.4% in May, marking the fifth consecutive month of losses [1][10]. - The volatility of the dollar is linked to the inconsistent trade policies, which have caused investors to seek alternatives to US assets [2][5]. Group 2: Trade Policy Uncertainty - Recent court rulings have created a confusing environment for investors, with a trade court blocking tariffs just as an appeals court reinstated them, indicating ongoing uncertainty [3][4][6]. - The unpredictable nature of these policies is likened to a "ticking time bomb," fostering a cautious market sentiment [5]. Group 3: Economic Data and Recession Concerns - Recent economic data, including a rise in initial jobless claims to 240,000, has heightened fears of a recession, as the first quarter GDP contracted by 0.2% [7]. - The weak demand for long-term bonds from developed economies like the US and Japan reflects broader concerns about fiscal debt levels [8]. Group 4: Emerging Markets - In contrast to the weakening dollar, emerging market currencies have shown strength, with an index tracking these currencies rising by 2.2%, the largest monthly gain since November 2023 [9][11].