Since Donald Trump's inauguration in late January, the dollar has lost about a tenth of its value. The downtrend is largely driven by unpredictable policies of the US President, who has entered into a trade confrontation with most of the leading economies and has made market participants doubt the stability of the US currency. So, traders began to withdraw from US assets, preferring other investment solutions. The dollar's status as the world's reserve currency was shaken. The euro may benefit from this, Reuters experts believe.
However, the European Union's single currency does not need to displace the dollar to strengthen its position. It only needs to achieve similar recognition and assure the markets of its reliability. The idea of monetary multipolarity is nothing new, according to Reuters. On the contrary, the dollar's long-term dominance has been the exception to the rule.
Among the key factors required for a currency to be recognized worldwide, the agency's experts highlight accessibility, reliability, and liquidity. The euro has all the necessary attributes to become such a currency.