Dollar Dips as Geopolitics Revive 'Sell America' Trade; Global Currencies Gain

• The dollar retreated for a second day in Asian trading due to White House threats against the EU over Greenland, triggering a broad selloff in U.S. stocks and government bonds.
• The dollar index fell 0.2% to 98.891, its lowest since January 13, as investors worried about U.S. market exposure.
• President Trump's renewed tariff threats against European allies led to a "Sell America" trade, causing declines in stocks, Treasury bonds, and the dollar.
• Investors are dumping dollar assets due to fears of prolonged uncertainty, strained alliances, and potential de-dollarisation trends.
• The euro, British pound, Australian dollar, and New Zealand dollar gained against the greenback, while the Japanese yen and Chinese yuan also saw strength.

Why It Matters: Geopolitical tensions and tariff threats are weakening the dollar and driving a global shift away from U.S. assets.