Core Viewpoint - The US dollar experienced its largest annual decline in eight years in 2025, with a 9% drop, and remains down about 1% from the start of the year despite a recent rally [1][2]. Group 1: Dollar's Performance and Market Sentiment - The dollar index has not recovered from the significant losses incurred after President Trump's tariff announcements, which caused a more than 5% drop in the dollar [2]. - Investors are skeptical about the US administration's commitment to a "strong dollar," as policy uncertainty continues to affect market confidence [1][2]. Group 2: Reserve Currency Status - The US dollar has long been regarded as the world's reserve currency, providing the US with an "exorbitant privilege" and serving as a safe haven during market instability [3]. - There are concerns that the dollar's reserve status may be threatened due to the US's changing role in global security and order, leading to potential reallocations away from the dollar [4]. Group 3: Monetary Policy Implications - The nomination of Kevin Warsh as Fed Chair has raised expectations of aggressive rate cuts, which briefly supported the dollar but ultimately contributed to ongoing uncertainty [5][6]. - President Trump's comments indicate a strong likelihood of rate cuts under Warsh's leadership, further complicating the dollar's outlook [6]. Group 4: Alternative Hedging Strategies - As geopolitical risks and policy uncertainties rise, traders are increasingly seeking alternative hedges, such as the euro, Swiss franc, and gold, indicating a shift in market sentiment away from the dollar [7].

Why is the Trump administration seemingly as unconcerned as it is about this and I'm including the treasury secretary here. Sure. Thanks so much, Ronnie.And, you know, it's tricky. You know, when we were reporting out this story, one investor told me, watch what they do, not necessarily what they say. So we have had the Treasury secretary, Scott Bersin, out talking about the administration's strong dollar policy, as they've had for for many decades now.But the next question is, do traders do investors reall ...