According to ChainCatcher, due to the Trump administration's tariff policies potentially weakening U.S. economic exceptionalism and the U.S. dollar, the demand for hedging potential dollar depreciation has surged to a 5-year high. Institutional data shows that the three-month risk reversal index measuring the dollar against 12 major currencies (the spread between call and put options) has dropped to its lowest level since the most severe global pandemic in March 2020.

The indicator fell below zero for the first time in five years last Friday, indicating that the demand for put options benefiting from dollar weakness exceeds the demand for call options benefiting from dollar strength. "Market aversion to holding dollars continues to dominate," said Chris Weston, research director at Pepperstone Group Ltd. in Melbourne. "The questions raised about the dollar are not a matter of a single day, but potential significant structural changes."