The post Traders unconvinced by strong‑dollar rhetoric as USD performance stays soft appeared on BitcoinEthereumNews.com.

The dollar had its worst year in nearly a decade, and traders aren’t falling for the tough talk anymore. While officials inside Donald Trump’s White House keep insisting they’re backing a “strong dollar,” the currency is still slumping. The dollar index is down another 1% since the start of 2026. That’s on top of the 9% plunge it saw in 2025, its biggest annual loss in eight years. Goldman Sachs foreign exchange strategists said in a note to clients that:- Fundamentally, we think the recent injection of policy uncertainty will be sufficiently durable to keep the dollar from making up lost ground.” They said investors had been expecting more support for the economy in 2026. What they got instead was a series of new tariff threats, which shook those expectations. Traders respond to tariffs and political shifts The real damage started last April, when Trump rolled out his “Liberation Day” tariffs. Within days, the dollar sank more than 5%. Almost a year later, it still hasn’t bounced back. Traders haven’t forgotten. And the rally some people hoped for never came. The dollar used to be the place everyone ran to in a crisis. It was seen as a safe haven. For decades, it held the unofficial title of the world’s reserve currency, which gave the US huge advantages. That status is now being questioned. Thierry Wizman, a strategist at Macquarie Bank, said, “If the reserve status of the USD does depend on the US role in the world — as guarantor of security and a rules-based order — then the events of the past year carry the seeds of a reallocation away from the USD, and the search for alternatives.” This isn’t just about tariffs. It’s also about the future of US monetary policy. President Trump nominated Kevin Warsh, a…

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Filed under: News - @ February 9, 2026 12:05 am