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Although seen by many as the ultimate safe haven currency, the global turmoil and geopolitical tensions of recent years have triggered a questioning of the US dollar’s dominance. This in turn has prompted predictions of a trend towards ‘dedollarisation’, as other countries reduce their reliance on the mighty greenback.

Equity markets have spent the last month moving in a relatively narrow range. There seem to be multiple headwinds. Even before the regional banking crisis in the US, higher interest rates have curbed the demand for credit, while core inflation remains stubbornly high.

The US Federal Reserve (Fed) and the European Central Bank (ECB) both delivered 25 basis points interest rate hikes, although neither definitively indicated that this would be their final upward move. Meanwhile, First Republic, another mid-sized US bank, was taken over after being hit by massive deposit outflows.