1542 GMT - The dollar retains its safe-haven status even as President Trump's widespread trade tariffs have led investors to diversify away from U.S. assets, says Blake Gwinn, head of U.S. rates strategy at RBC Capital Markets. "If you need liquidity in a time of stress you need dollar liquidity. There is no deeper or more liquid market," he says. Alternatives such as gold, European bonds or Japanese bonds could never provide the liquidity U.S. Treasurys and the dollar provide, he adds. Still, Gwinn says the U.S. has recently "lost some of its stability premium." The trend of 'de-dollarization' is worth watching but it is a longer-term story where the impact is likely to be marginal, he says. (jessica.fleetham@wsj.com)

(END) Dow Jones Newswires

May 09, 2025 11:42 ET (15:42 GMT)

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