Darius McDermott: The uncertain future of the US dollar

One of the defining features of 2025 has been the abrupt halt in the previously inexorable rise in the US dollar. Wayward fiscal policy and rising debt levels in the US saw the dollar slide in the first six months of the year, denting its reputation as a safe haven and giving international investors pause for thought on US assets. However, the dollar has stabilised since July, and the outlook for the world's reserve currency is hard to read from here. Many of the factors that weakened the dollar in the early part of 2025 remain in place. For example, the US still has a vast debt ...