New York, 13 July 2026 – The United States dollar is gaining support from a combination of geopolitical uncertainty, persistent inflation and expectations that US interest rates may remain elevated, but those same forces are creating mounting pressure on government bonds and complicating investment strategies across global markets.
The divergence challenges the traditional assumption that the dollar and US Treasuries will strengthen together when investors seek safety. While international demand for the dollar remains firm, longer-dated government bonds are struggling as investors demand greater compensation for inflation, fiscal uncertainty and the risk that monetary policy will remain restrictive.
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