Deutsche Bank Questions US Dollar's Safe-Haven Status Amid AI Investment Risks

Deutsche Bank's recent analysis raises doubts about the US dollar's role as a dependable safe-haven asset. According to NS3.AI, the bank points to a diminishing correlation between the dollar and equities, suggesting a shift in its traditional safe-haven status. The report highlights the risks associated with significant AI investments by major tech firms, which have led to increased market volatility and uncertain returns in the US. Furthermore, the trend of foreign investors hedging their dollar exposure indicates a waning confidence in the dollar as a reliable portfolio hedge.