US Dollar Safe-Haven Status Faces Debt-Market Strains: Rabobank

Rabobank’s Senior FX Strategist Jane Foley warns that the dollar’s usual safe-haven appeal is under pressure as global bond yields rise and worries about US fiscal discipline grow. The combination is making it harder for US Treasuries and the dollar to play their traditional defensive role.

Investors are increasingly questioning whether US government debt can remain an automatic refuge when fiscal risks are in focus. That shift could weaken demand for the dollar during periods of market stress.

Foley’s assessment points to a more cautious outlook for the greenback if debt-market strains continue to build.