LONDON: A year on from U.S. President Donald Trump's sweeping 'Liberation Day' tariffs, the dollar looks in much stronger shape with its safe-haven credentials reasserted in the face of war in the Middle East.
The dollar rallied around 1.6% in the first three months of the year, its best quarterly performance since late 2024, supported by the United States' status as an energy exporter and by investors' flight to cash.
It's a sharp contrast to a year ago when Trump's tariffs sparked a dollar slide as investors reacted to heightened U.S. tariff uncertainty as well as Trump's attacks on the Federal Reserve and his distancing from allies and global institutions.
While the dollar has rebounded early in 2026, analysts say the currency still faces downward pressure over the long-term while questions about the currency's dominance in global trade and finance linger. Recent shifts have been too small to make a significant dent in the dollar's overall position.—Reuters
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