US dollar falls on trade war worries

RBC BlueBay Asset Management has opened short positions on on the US dollar, betting on the end of US exceptionalism as President Donald Trump's trade war threatens to destroy decades of trust and credibility in the currency.

- SUMMER ZHEN

The dollar has been falling on concerns over the impact Trump's trade tariffs will have on the economy, consumer incomes and markets, and as investors pull money out of US stocks, signalling doubts over its "exceptionalism" or status as the bedrock of the global financial system.

An index of the dollar's value against six other major currencies is down 4% in April and on track for its worst month since 2022.

"At the beginning of last week, we were selling dollars," said Mark Dowding, chief investment officer for RBC BlueBay's fixed income team, who oversees over $133 billion in assets globally, in an interview.