The euro has surged to a three-year high against the dollar, marking a powerful signal that a full-blown crisis of confidence in the US currency is now underway — a moment that could, in time, be seen as the beginning of the dollar’s long-term decline, warns the CEO of one of the world’s largest independent financial advisory organisations.
The assessment from deVere Group’s Nigel Green comes as the dollar slid to $1.138 against the euro on Friday, forcing investors to confront a new reality: the world’s most trusted safe haven is no longer beyond question.
“It’s a major inflexion point,” he says. “The dollar’s dominance has always rested on a foundation of trust—trust in US stability, trust in open trade, trust in responsible economic leadership. That foundation is cracking, and the euro’s strength is one of the clearest signs that global markets know it.”
The sharp move follows President Donald Trump’s dramatic rollout and then backpedal of universal tariffs on all US imports — an aggressive, inflationary policy shift that has stunned global markets and raised alarm bells about America’s economic trajectory.
At first, as global risk aversion took hold, investors instinctively moved into the dollar. But that instinct is rapidly giving way to recognition that the threat isn’t coming from abroad — it’s being manufactured in Washington.
“When inflation is stoked internally, when monetary policy is politicised, and when America’s commitment to open markets is abandoned, the basic premise behind the dollar’s safe-haven appeal falls apart,” explains Nigel Green.
He continues: “The dollar can mechanically rally in moments of panic, but it cannot indefinitely withstand policies that rot its core strengths.
“If the US weaponises its currency and economic size, the rest of the world will respond — and the dollar’s unrivalled position will start to erode.”
Signs of that erosion are already emerging.
“Central banks across Asia, the Middle East, and beyond have been quietly scaling back their exposure to US Treasuries. Bilateral trade deals that bypass the dollar are gaining ground. Digital currencies are moving steadily toward the financial mainstream.”
The deVere CEO explains: “Global finance doesn’t change overnight, but we are clearly moving toward a less dollar-centric system.
“This current crisis could very well be seen in the future as the tipping point.”
The euro’s powerful move encapsulates this broader shift. It’s not just a bet against US policy — it’s a reflection of growing global appetite to diversify away from the dollar altogether.
“The euro’s breakout is not random — it’s a market referendum on the United States,” adds Nigel Green.
“It tells us that trust, once lost, doesn’t drift back easily. It requires extraordinary effort to rebuild — and right now, that effort is nowhere in sight.”
Investors, he stresses, must urgently rethink old assumptions about dollar safety.
“The world is evolving. Smart investors must evolve with it — increasing exposure to non-dollar assets, real assets, and markets positioned to benefit from currency shifts.”
He concludes: “The euro’s surge is the canary in the coal mine. It’s a signal that the dollar’s era of unquestioned dominance is under siege — and the events of this week might ultimately be remembered as the beginning of the end.”