The dollar’s safe-haven status is under pressure from America’s own economic and trade policies. Underpinned by the economic and institutional strength of the United States, the U.S. dollar has been the world’s dominant currency since World War II.

Stock markets and the dollar retreated Thursday after US President Donald Trump threatened higher unilateral tariffs on partners in the coming weeks, reigniting trade war fears

The dollar slid on Thursday on heightened expectations of Federal Reserve rate cuts this year and lingering uncertainty over tariff battles. Trump said on Wednesday he would be willing to extend a July 8 deadline for completing trade talks with countries,