The U.S. dollar is losing its grip on global markets as investors react to mounting policy and macro risks, accelerating a sharp sell-off and a shift toward rival currencies, according to an expert.
US Dollar Dominance Eroding as Expert Warns Stacked Macro RisksGlobal currency markets are showing renewed strain as confidence in established monetary leadership weakens. Independent financial advisory organization Devere Group warned on Jan. 28, 2026, that the U.S. dollar’s dominance is fracturing as investors react to compounding macroeconomic and policy risks.
The warning follows an accelerating sell-off in the greenback after President Donald Trump publicly downplayed the currency’s recent sharp declines, intensifying unease across foreign exchange markets. The dollar slid 1.3% against a basket of major currencies, touching its lowest level in four years, while the euro and sterling climbed to their strongest levels since mid-2021 and the yen advanced toward ¥152 per dollar. Devere Group CEO Nigel Green stated:
“Currency markets are flashing red. The dollar sits at the centre of the global financial system, and moves of this scale signal a serious loss of confidence in America’s policy direction.”
“The dollar will remain central to global finance, but its supremacy has been cracking in recent years, and this has been accelerated in recent days, with markets now seemingly building an escape route,” he opined.
FAQ ⏰ Why is the U.S. dollar falling against major currencies? The dollar is weakening as investors price in rising policy uncertainty, heavy debt issuance, and unpredictable trade decisions. What did Devere Group warn about the dollar? Devere Group said the dollar’s global dominance is fracturing as markets lose confidence in U.S. policy direction. Why are the euro, sterling, and yen rising? Investors are rotating capital into currencies viewed as more stable or defensive amid U.S. policy volatility. How do tariffs affect the U.S. dollar? Tariffs raise inflation risks and hurt growth expectations, which FX markets immediately reflect through a weaker currency.
