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Global de-dollarisation trend intact as safe-haven rally in US dollar peters out

Though divided on the Fed’s next moves, economists say a weaker greenback should give Asian central banks room to ease

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Goh Ruoxue

Published Tue, Jun 24, 2025 · 07:07 PM

The US dollar index over the weekend crept up towards the key 100 threshold – a level last hit in late May – after US President Donald Trump posted on Truth Social about the “very successful air strikes” on three Iranian nuclear sites on Jun 22. PHOTO: REUTERS

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[SINGAPORE] The US dollar’s recent bout of strength – a short-lived one – amid rising Israel-Iran tension signals that the greenback’s safe-haven status is intact. But its swift slide on news of a ceasefire on Tuesday (Jun 24) also suggests that the de-dollarisation narrative is still in play, said analysts.

Deutsche Bank’s global head of emerging markets and Asia-Pacific research, Sameer Goel, told The Business Times: “The price action last week, including in Asian currencies, in response to geopolitical risk in the Middle East supports the more traditional safe-haven appeal of the dollar...

“But I don’t think that reverses the de-risking trend in global markets to re-calibrate their unhedged exposure to the dollar.”

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