In recent weeks, Federal Reserve caution and last-minute fiscal deals have eased the threat of outright panic. But the damage is done: foreign-exchange traders have attached fresh risk premia on the dollar, triggering one of its sharpest deratings since the 1970s.
That shift matters. Investors no longer assume the dollar’s strength as a given. The old mantra – strong unless proven weak – has been replaced by its inverse.
Investors warn American exceptionalism ‘not dead but diminishing’
This reversal reflects growing doubts about American exceptionalism. Political brinkmanship, erod…
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