President Donald Trump's actions have caused concern among American allies and trading partners, leading to uncertainties about US assets, particularly the dollar. While the dollar is currently the dominant global currency, doubts are emerging regarding the US's reliability in the future.

The international community is beginning to question its trust in the US, and this could have implications for financial markets, including the status of the dollar. Despite its current stronghold in global reserves and transactions, there are growing concerns about the US's dependability.

President Trump's unconventional approach has unsettled traditional allies and trading partners. His overtures towards Russia and warnings to NATO members about defense spending have caused alarm. This has led some analysts to suggest that US treaties may no longer hold weight, with implications for currency dynamics.

The unpredictability of US foreign policy under Trump has raised doubts about long-standing alliances, such as NATO, and has prompted countries like Japan to seek alternative safe-haven currencies. This shift in confidence could have repercussions for the dollar's global standing.

Economist Barry Eichengreen emphasizes the importance of alliances in currency dynamics. He warns that if the US is perceived as abandoning its allies, the dollar's role in global finance could be compromised. Throughout history, countries have relied on their allies' currencies for reserves and transactions, highlighting the interconnectedness of geopolitics and financial stability.