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Opinion: Why Trump’s policies are forcing countries to distrust the U.S. and the dollar - MarketWatch

1. U.S. debt appetite may face limits with geopolitical tensions rising. 2. Trump's trade war exacerbates concerns about U.S. currency reliance. 3. A digital currency backed by multiple currencies is being considered. 4. The federal deficit is projected to exceed 7% of GDP soon. 5. Rising interest rates could drive investors to seek dollar alternatives.

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FAQ

Why Bearish?

Geopolitical tensions and high federal deficits may undermine confidence in the U.S. dollar, leading to decreased demand for DX00.

How important is it?

Foreign investment sentiment toward U.S. debt is critical for DX00 performance, and the risks outlined in the article directly affect such sentiment.

Why Long Term?

The structural changes in currency reliance and potential alternatives to the U.S. dollar may evolve over the coming years, affecting DX00 in the long run.

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