The US dollar has experienced a significant and rapid drop, affecting global prices and international transactions.

The global community is losing confidence in the US dollar and quietly quitting US assets, but the administration doesn't seem to mind.

The dollar had its biggest drop since Trump unveiled universal tariffs, falling sharply against major currencies like yen, euro, pound, and Swiss franc.

The dollar decline is coming off very strong levels, with the Bloomberg Dollar Index near 20-year highs at the start of 2025.

The primary force behind the dollar's fall is Trump's unpredictable policymaking, including tariff threats, pressure on the Fed, and tax cuts deepening the deficit.

Trump's remarks underscore the risk that global investors will look elsewhere.

Tariff threats are being used as negotiating tools on multiple fronts, casting a shadow over the fragile US economy with little job growth in past six months.

Dollar weakness persists despite rising Treasury yields and Fed reluctance to cut rates further.

Global investors may hedge more of their US dollar exposure given the declines, especially those participating in US stocks or AI theme.

A weaker dollar boosts exports and manufacturing but makes imports more expensive and complicates debt repayment of $38 trillion owed to foreign countries.

Despite record highs, US stocks have underperformed global peers, suggesting investors don't need to sell America to hurt the dollar - just buy less of it.

Major banks are telling investors to take profits on weaker dollar trades as not everyone believes Trump's comments will lead to long-term dollar selloff.

The dollar is already rebounding and likely to continue in short run as Trump walks back tariff threats and US economy improves, but uncertainty lingers.

Bloomberg reporting shows real fear of dedollarization among investors, though this process will take time to play out.