Al Mayadeen English

  • Ar
  • Es
  • x
Al Mayadeen English

Slogan

  • News
    • Politics
    • Economy
    • Sports
    • Arts&Culture
    • Health
    • Miscellaneous
    • Technology
    • Environment
  • Articles
    • Opinion
    • Analysis
    • Blog
    • Features
  • Videos
    • NewsFeed
    • Video Features
    • Explainers
    • TV
    • Digital Series
  • Infographs
  • In Pictures
  • • LIVE
News
  • Politics
  • Economy
  • Sports
  • Arts&Culture
  • Health
  • Miscellaneous
  • Technology
  • Environment
Articles
  • Opinion
  • Analysis
  • Blog
  • Features
Videos
  • NewsFeed
  • Video Features
  • Explainers
  • TV
  • Digital Series
Infographs
In Pictures
  • Africa
  • Asia
  • Asia-Pacific
  • Europe
  • Latin America
  • MENA
  • Palestine
  • US & Canada
BREAKING
Israeli media: Intense US efforts are being made to resolve differences, such as the issue of the Israeli presence on Mount Hermon and in southern Syria
Israeli media: The security agreement means amending the disengagement agreement, which will also address the Druze issue
Israeli media: Attempts to reach a security agreement between 'Israel' and Syria were among the topics discussed at the Paris meeting
Israeli media: Sheikh Muwaffaq Tarif rejected a US proposal to join the recent tripartite meeting between Tom Barrack, al-Shaibani, and Dermer
Saba News Agency: Two martyred, five injured in a preliminary toll of the Israeli aggression on the Yemeni Oil Company station on Al-Sitteen Street in Sanaa
Senior Yemeni military source to Al Mayadeen: We observed a state of confusion among the enemy's aircraft squadron after Yemeni air defenses intercepted the attack
Senior Yemeni military source to Al Mayadeen: The Yemeni air defense forces succeeded in neutralizing a squadron of enemy aircraft and prevented airstrikes on some governorates
Senior Yemeni military source to Al Mayadeen: Our air defenses and missile forces forced a formation of enemy aircraft to flee the airspace
Member of the Ansar Allah Political Bureau, Mohammed al-Bukhaiti: The Israeli aggression on Yemen will not deter us from continuing to support Gaza, no matter the sacrifices
Al Mayadeen's correspondent: The Israeli aggression targeted the Yemeni Oil Company station on Al-Sitteen Street, southwest of the capital, Sanaa, with several raids

US no longer seen as safe haven by global investors: Axios

  • By Al Mayadeen English
  • Source: Axios
  • 12 Apr 2025 09:53
4 Min Read

A historic week of market turmoil has shaken global confidence in the US financial system, as investors sell off both the dollar and Treasury bonds, signaling deepening concerns.

Listen
  • x
  • US no longer seen as safe haven by global investors: AxiosMembers of media stand near a screen showing the Korea Composite Stock Price Index (KOSPI), top left, and the foreign exchange rate between U.S. dollar and South Korean won, top center, at the foreign exchange dealing room of the KEB Hana Bank headquarters in Seoul, South Korea, on Wednesday, April 9, 2025 (AP)

For generations, US Treasury bonds and other dollar-denominated assets have served as the world’s financial haven, but this week, global investors were confronted with the unsettling realization that these assets may no longer be as safe, nor as reliable, as once believed, Axios reported on Friday.

It emphasized that the events of the past nine days are likely to be remembered as a pivotal moment in economic history, with developments in global trade and financial markets, typically years in the making, unfolding at an unprecedented pace, reshaping expectations daily.

April 2025 may well join the ranks of landmark economic turning points alongside July 1944, August 1971, and September 2008, moments that scholars have studied for decades, the news website added.

It noted that trade policy shifts have been particularly dramatic: the United States and China, the world’s two largest economies, are now imposing tariffs exceeding 100% on each other’s imports. Should this trend persist, it would effectively bring bilateral trade to a halt.

Yet, it is the unusual behavior in bond and currency markets that is raising the gravest concerns about global confidence in the US-led financial system that has dominated since the end of World War II, according to Axios.

In a week marked by sell-offs across equities and other risk assets, US Treasuries and the dollar also declined — an extraordinary and troubling development, the report remarked.

Axios noted that, historically, during periods of severe market turmoil, such as the 2008 financial crisis or the early stages of the COVID-19 pandemic, the dollar rallied as investors sought the safety of US assets.

Related News

France summons US ambassador over 'antisemitism' letter

CDC confirms first flesh-eating screwworm case in US

Those past crises were marked by a global shortage of dollars so acute that the Federal Reserve was forced to step in with emergency measures, including currency swap lines and liquidity support. No such shortage exists today.

Krishna Guha of Evercore ISI considered that this week has seen a "rare, ugly and worrying combination of market moves."

As of 11 am ET on Friday, the yield on the 10-year US Treasury note stood at 4.57%. While not inherently concerning — yields were higher as recently as January — the rapid rise from below 4% just a week earlier is notable and worrisome.

Meanwhile, the US dollar index, which measures the dollar’s performance against six major currencies, has fallen 3.4% since Tuesday and 9.2% since mid-January, a steep decline by the standards of global currency markets.

Axios explained that these moves suggest that growing fiscal imbalances, weakening diplomatic relations, and perceived instability in US leadership are making international investors increasingly cautious about maintaining exposure to the United States.

The market "is re-assessing the structural attractiveness of the dollar as the world's global reserve currency and is undergoing a process of rapid de-dollarization," suggested Deutsche Bank currency strategist George Saravelos.

"Markets can behave weirdly, and maybe this will turn out to be just a few bumpy trading days. But the world's most important financial markets — for the dollar and Treasury securities — are signaling that something fundamental is shifting beneath our feet," Axios indicated.

Read more: US tariffs threaten $2 trillion in global investments: Financial Times

  • United States
  • tariffs
  • US
  • trade war
  • Trade
  • investment

Most Read

Tom Artiom Alexandrovich, executive director of the defense division of the Israeli National Cyber Directorate, undated (Social media)

Israeli-born US prosecutor drops Israeli officer child sex crime

  • Politics
  • 19 Aug 2025
Displaced Palestinians walk through a makeshift camp along the beach in Gaza City, Sunday, Aug. 10, 2025 (AP)

Hamas, other factions accept Egypt-Qatar ceasefire proposal: Exclusive

  • Politics
  • 18 Aug 2025
Palestine will not be liberated by UN reports, but by pursuing a different strategic horizon: one that does not beg for recognition. (Al Mayadeen English; Illustrated by Batoul Chamas)

Economy of Genocide: Albanese's report accuses, but doesn't dismantle system

  • Opinion
  • 18 Aug 2025
Israeli soldiers stand on the top of armoured vehicles parked on an area near the Israeli-Gaza border, as seen from southern Israel, Wednesday, Aug. 20, 2025 (AP)

Palestinian fighters target Israeli soldiers, vehicles in Gaza

  • Politics
  • 21 Aug 2025

Coverage

All
The Ummah's Martyrs

Read Next

All
Israeli Prime Minister Benjamin Netanyahu speaks during a press conference at the Prime minister's office in al-Quds, Occupied Palestine, Sunday, Aug. 10, 2025 (AP)
Politics

Netanyahu deliberately derailing truce with Gaza occupation: Hamas

Irish President Michael Higgins arrives to deliver his speech during a 42nd World Food Day celebration at FAO headquarters in Rome, on Oct. 16, 2023. (AP Photo/Alessandra Tarantino)
Politics

Irish president renews call for UN military intervention in Gaza

US Ambassador to Turkey and Special Envoy to Syria Tom Barrack speaks during an interview with The Associated Press at the US Embassy in Aukar, northern suburb of Beirut, Lebanon, Monday, July 21, 2025 (AP)
Politics

US envoy, Netanyahu discuss restraining attacks on Lebanon, withdrawal

Smoke billows following Israeli airstrikes in multiple areas in Sanaa, Yemen, Sunday, Aug. 24, 2025 (AP)
Politics

Ansar Allah vow sustained Gaza support despite Israeli strikes

Al Mayadeen English

Al Mayadeen is an Arab Independent Media Satellite Channel.

All Rights Reserved

  • x
  • Privacy Policy
  • About Us
  • Contact Us
  • Authors
Android
iOS