The U.S. dollar continued to lose ground in 2024 as the world’s dominant reserve currency—but it was gold, not the euro, that capitalized most on the shift, according to a June 11 report from the European Central Bank (ECB).
Investor appetite for dollar-denominated assets weakened notably beginning in April, amid growing concerns over erratic U.S. trade policy and long-term fiscal sustainability. ECB president Christine Lagarde described the moment as a potential inflection point—an opening for the euro to establish itself as a credible alternative to the dollar, provided the 20-member eurozone can finally deliver long-promised reforms to deepen financial and capital market integration.
