The dollar's link to US Treasury yields has weakened as investors pull out of US assets due to trade war risks weakening the economy.
The traditional relationship between the dollar and Treasury yields is currently the weakest in three years as investors question the dollar's haven status and central role in the global financial system.
The options market suggests traders are positioning for a weaker dollar over various time spans, indicating growing concerns about the sustainability of the greenback as a reserve currency.
The dollar-yields correlation is at its lowest since the aftermath of Russia's invasion of Ukraine, reflecting an accelerating exodus from US assets and damage to the US brand.