USD: Fed attack fuels de-dollarization debate – ING

The US Federal Reserve's recent rate cut has reignited discussions around de-dollarization, questioning the dollar's stability and value. This is particularly evident in the energy markets as investor caution grows, with Brent crude prices dropping 5% due to geopolitical shifts. The easing of tensions between the US and Iran has notably affected oil prices, raising concerns over the global economic implications and the dollar's role. This situation could lead to a reduction in dollar reliance in trade and promote the adoption of alternative currencies, potentially introducing new dynamics to the market in the long run. However, in the short term, the market remains uncertain, necessitating caution among investors.