Act now as dollar dominance “dilutes”: deVere | Australian Markets

The CEO of world advisory organisation, deVere Group, has issued a warning to buyers who could also be “underestimating the scale and trajectory of the US dollar’s decline”, as the age of ‘dollar dominance’ appears to be dying down.

Nigel Green mentioned buyers have remained surprisingly “muted” in response to the US dollar experiencing its worst begin to a 12 months since 2008 down more than 4 per cent on the Dollar Index (DXY), after a excellent storm of protectionist trade insurance policies, rising geopolitical rigidity and warning on rate of interest cuts during the primary a number of months of the second Trump administration.

This has led central banks to reverse their reliance on the dollar, taking their reserves from 70 per cent in 2000 down to 59 per cent now based on the International Monetary Fund (IMF).

“We don’t believe this is a short-term wobble. It’s the opening phase of a steady but far-reaching shift,” Green mentioned. 

“Dollar supremacy isn’t vanishing overnight, but its era of unquestioned dominance is fading. This carries enormous consequences for global portfolios, pricing, and capital allocation. This decline is not a crash—it’s erosion.”

According to Green, the euro has surged forward of the pack of currency alternate options, rising more than 4 per cent towards the dollar within the final two weeks supported by “Europe’s moves toward fiscal coordination, collective defence investment, and economic resilience”. Similarly, the Japanese yen has taken on the “safe-haven” designation, whereas the South Korean received reveals “renewed resilience” and China’s yuan continues its upward trajectory as “Beijing signs cross-border trade agreements that sidestep the dollar entirely”.

“The euro is repositioning itself not just as a regional anchor, but as a serious global stabiliser,” Green mentioned.

“That doesn’t mean it will replace the dollar, instead it’ll be part of a broader mosaic of major currencies taking on more influence. We don’t think any single currency is about to take the dollar’s place. Instead, we expect a more fragmented system—one where influence is shared across a handful of credible currencies. This evolution is gradual, but it’s no less profound.”

Green urged buyers to let go of the “old model” mentality and act forward of the curve, shifting to a “currency plurality” model as an alternative. This comes as consensus over the US Federal Reserve’s subsequent coverage strikes weakens and the fallout of upended trade coverage continues to reverberate all through US industries.

“This shrinking rate gap makes US debt less attractive. And when demand for Treasuries softens, so does demand for dollars,” he mentioned.

“Investors should stop assuming the dollar will all the time rebound. That pondering is dangerously outdated. The shift to dominant currency plurality is underway. Those clinging to the previous model risk being blindsided.

“Those who act early will be best placed to capitalize on the next phase of global finance.”