Your money is no good here (or anywhere)

If you were hoping to find something that you can still purchase with spare change these days, beware: Your hard-earned cash doesn’t go as far as it once did.

The US dollar fell to its lowest level since November 2024 today—capping off its worst weekly performance since November 2022—after another piece of lackluster jobs data this morning showed that the labor market is cracking.

But it wasn’t just rising unemployment that pushed the dollar down. The value of the greenback has been trending lower for the past few weeks amid a broader decline in stocks and major tariff chaos. Investors are worried that a global trade war could both stifle US growth as well as cause central banks to slash rates further, which weighs against the dollar because lower rates tend to decrease the currency’s value.

Meanwhile, the euro has been killing it in comparison: It’s gained 4.6% over the last few days, on pace for its best week in 16 years due not only to tariff mayhem, but also thanks to Germany unveiling a slew of major fiscal reforms, including massive investment in defense infrastructure (more on that later.)

Zoom out: Historically, the dollar has been the undisputed king of cash. Nations across the world rely on the dollar to underpin their economies, and it's considered to be the most stable of currencies.

But that dynamic could be shifting: Deutsche Bank’s head of FX strategy George Saravelos recently argued that the dollar’s safe-haven reputation could be in jeopardy. Saravelos pointed out that as the US shifts away from protecting Europe and free trade, the geopolitical order could shift away from the dollar.

Can the💲regain its former glory?

While the pros argue that there is more volatility ahead, their best advice is to spread your dollars across US equities, fixed income, and alternatives such as gold.

“We continue to expect returns on cash to fall in much of the world, including the Eurozone and US. Against this backdrop, investors should seek more diverse and durable sources of income,” wrote UBS CIO Solita Marcelli in a note today.—LB