Following President Trump’s April 2 “Liberation Day” speech, stories proliferated that foreign investors were losing their appetite for dollar-denominated assets as U.S. stocks, bonds and the dollar all sold off. Some observers wondered if the U.S. was in danger of losing its status as a safe haven as a result of the widespread duties it imposed on trading partners.

The fears have lessened since then, as the U.S. stock market has gone on to set record highs and U.S. Treasurys have rallied.

The catalysts for the turnaround were President Trump’s decision to delay the implementation of reciprocal tariffs by 90 days (until July 9) and the truce the U.S. reached with China in May to reduce tariffs from unprecedented levels.

The fate of the dollar, however, is still in question. It depreciated by about 10 percent on a trade-weighted basis in the first half of this year, and many currency forecasters anticipate it will weaken further as the Federal Reserve eases monetary policy.

One reason is that lower U.S. interest rates lessen the attractiveness of U.S. bonds for foreign investors. Another reason is they also reduce the

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