Recent U.S. dollar strength reflects cyclical forces like geopolitics and energy, not a full structural reset.
The dollar’s safe-haven role is becoming more conditional, not universally reliable.
For investors, this reinforces the case for reviewing hedge ratios and considering more dynamic approaches, as short-term dollar strength can persist even within a longer-term weakening trend.
Thomas Nuehnen/iStock Editorial via Getty Images
For much of 2025, the U.S. dollar looked vulnerable: expensive, less supported by the exceptionalism narrative, and heading toward a weaker regime. Then the war in the Middle East changed the picture. Energy
