Morgan Stanley predicts Trump’s policies will influence the shift away from the dollar, citing debt, trade, sanctions, and security. The bank notes the dollar’s decline over 25 years but sees no clear alternative to gold, now trading at record highs and surpassing U.S. Treasuries in central bank holdings.

Questions surrounding U.S. debt sustainability, Federal Reserve independence, and trade uncertainty are impacting the dollar. Trump’s tariff use in political negotiations, such as the Greenland standoff with European countries, adds strain to NATO. Morgan Stanley suggests a NATO breakup could harm the dollar, but geopolitical insecurity may increase demand for it as a safe-haven asset.

Read more at Yahoo Finance: US policy factors ‘critical’ to extent of de-dollarisation shift, Morgan Stanley says