Goldman Sachs analysts warn that the US dollar may start trading as a riskier currency again due to various factors.
Factors such as policy uncertainty, trade tariffs, Federal Reserve independence, fiscal fears, and diversification away from US assets could trigger volatility in the dollar.
The dollar has shown an increased tendency to sell off alongside US equities in 2025, indicating a shift in correlations compared to previous years.
While a permanent shift in the dollar's status as a safe-haven asset is not predicted, short-term volatility is expected.