A strategic analyst from Deutsche Bank, George Saravelos, has sparked controversy by suggesting that the US dollar is no longer a safe haven as it once was. This assertion comes on the heels of his previous comments that upset US Treasury Secretary, Scott Bessent, regarding potential effects of punitive tariffs by former President Donald Trump on American bonds held by European investors.

Saravelos highlights a significant shift in the relationship between the dollar index (DXY) and the S&P 500, indicating a decoupling that suggests that traditional expectations of dollar strength during turmoil may no longer hold. Results from Deutsche Bank’s analysis indicate that the dynamics underpinning the dollar's value are evolving, primarily due to changing market conditions and investor sentiment.

The implications of this shift could be far-reaching, as it challenges the long-standing perception of the dollar's reliability during times of crisis, potentially leading to a re-evaluation of investment strategies among worldwide investors. This may also open the door for alternative currencies or assets to gain traction among those seeking refuge in volatile times.