Although recent months have seen a slight decline in dollar volatility, analysts at Goldman Sachs are warning that the currency may soon start trading more like a risk asset. The forecast, reported by Bloomberg, points to rising political uncertainty as a key factor—particularly concerns over trade tariffs and the future independence of the US Federal Reserve.
While Goldman Sachs does not believe the dollar has irreversibly lost its status as a safe-haven asset, the outlook appears increasingly unstable. According to Bloomberg, the dollar now behaves less like a refuge and more like a source of volatility.
Goldman Sachs analysts described one of the most “striking” developments of 2025 as the growing tendency for the dollar to fall in tandem with US equities—an unusual and troubling trend.
“This challenges the dollar’s traditional role as a stabilizer in times of market stress,” the report notes.
Meanwhile, the global shift away from the dollar continues. In early June, several Asian countries intensified efforts to reduce their dependence on the greenback. Analysts cite inconsistent trade decisions by President Donald Trump and the dollar’s sharp depreciation as catalysts accelerating dedollarization and prompting moves toward alternative instruments.
