Investors are turning bearish on the U.S. dollar as Trump tariffs loom

The rollout of President Donald Trump’s tariffs regime is impacting sentiment toward the dollar, leading investors to seek alternative foreign exchange trades, according to strategists interviewed by CNBC. The dollar index, which measures the greenback against major rivals, has seen fluctuations after a steady rise in late 2024. The shift in currency trader positioning reflects a growing bearish sentiment on the dollar and a more bullish outlook on the currencies of major U.S. trading partners amid preparations for a multinational trade war, as noted by RSM U.S. chief economist Joseph Brusuelas.

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