Analysis-Market distress could see trillions of dollar holdings seek currency protection
  • April 11, 2025

Analysis-Market distress could see trillions of dollar holdings seek currency protection

SINGAPORE (Reuters) -As Donald Trump's grand plan to redefine global trade whipsaws the U.S. dollar, investors who hold tens of trillions' worth assets in the currency may for the first time in decades be seeking ways to protect the value of those holdings. Such has been the unquestionable faith in the dollar for years that just a fraction of the $33 trillion of global money invested in U.S. markets is protected, or hedged in market parlance, for currency volatility. That may have changed this week as the dollar and U.S. Treasuries - both historically first among equals as refuges during crises - became the biggest casualties of a market rout triggered by the U.S. President's reciprocal trade tariffs.