Is the Global Monetary System Entering a Century-Defining Shift? Dollar Plummets Below 100, as Euro and Yen Surge

TradingKey – With U.S. President Donald Trump returning to the White House armed with an anti-globalization agenda and reciprocal tariff policies, Wall Street’s forecasts for a strong dollar have been all but dismantled. Veteran market observers are warning that Trump’s aggressive trade stance is reshaping global commerce and monetary dynamics, raising alarms over a potential dollar crisis.

This week, the U.S. dollar continued its decline, while traditional safe-haven currencies such as the Japanese yen, euro, and Swiss franc rallied. On the morning of Friday, April 11, the U.S. Dollar Index (DXY) briefly fell below the 100 mark, retreating sharply from its peak of 110 in the month Trump assumed office— a monthly decline of 3.55%.

The dollar tumbled more than 2.5% against the yen on Thursday, currently trading at 143.92 anddown 4% for the month. The euro (EUR/USD) surged 2.80% to 1.1260, up over 4% this month and reachinga three-year high. Meanwhile, the dollar plummeted 4.34% against the Swiss franc (USD/CHF) to 0.8243, markinga staggering monthly drop of 6.74%.

Renowned economist Peter Schiff remarked that he has never witnessed such a large-scale exodus fromU.S. assets—dollars, Treasuries, and equities have all come under pressure. He noted that he couldn’t recall another instance where thedollar lost 3.5% against the Swiss franc in a single intraday move.

Strategists at the Commonwealth Bank of Australia pointed out that Trump’s unpredictable tariff shifts have eroded investor confidence in both the U.S. economy and its government’s credibility.

Analysts at OCBC Bank echoed this sentiment,  highlighting how fading notions of American exceptionalism and surging U.S. debt have intensified doubts surrounding the dollar’s role as the world’s reserve currency.

At a deeper level, Bridgewater Associates founder Ray Dalio warned that while the direct economic impact of tariffs is significant, the broader systemic consequences are being overlooked being overlooked.  According to Dalio, the world is witnessing the gradual breakdown of the global monetary, political, and geopolitical order.

Dalio explained that the traditional model—where debtor nations like the U.S. consume via borrowing, and creditor nations such as China grow through exports to those same economies—is becoming increasingly untenable.  Trump’s push to revive American manufacturing, Dalio argues, is disrupting the existing monetary framework, with far-reaching implications.