In the FT today:The dollar’s dominance was built on the foundation of America’s many strengths. But like termites eating away at a house’s woodwork, Trump’s dysfunctional policies are eating away at its support and rendering the US currency acutely vulnerable to future shocks. This remarkable newfound weakness was on full display this week, after President Donald Trump reality-divorced insistence that “the dollar is doing great”. Traders responded by sending it even lower:Kamin and Sobel identify where the termites are gnawing away:— The status of the US as a trusted ally and partner has eroded further, weakening a key pillar of the dollar’s global stature. I think that the stunning drop in the dollar is consistent with a loss of credibility driven by the termites progress, as discussed here.