A growing number of investors are turning negative on the dollar as data points to a cooling US economy at the same time as Europe ramps up spending.The dollar has dropped against all but a handful of the 31 major currencies over the last three months, sending Bloomberg’s dollar index down nearly 3%, its worst start to a year since 2017. But the price of gold — a rival haven — has surged to a record high of over $3,000 an ounce.By mid-March, speculative traders started betting against the dollar for the first time since President Donald Trump’s election amid fears his policy shifts could drive the world’s largest economy into a recession. Consumer confidence in the US fell in March to the lowest level in four years, according to new data released last week.Speculative traders flipped to wagering against the greenback in the week ending March 18 after being the most dollar bullish in mid-January ahead of the inauguration, according to Commodity Futures Trading Commission data.“As opposed to being the usual bastion of stability and first choice haven for foreign-exchange market operators, the greenback instead now stands as quite the opposite,” according Michael Brown, a senior research strategist in London for Pepperstone, one of the largest currency brokerages.To be sure, the recent drop hasn’t significantly eroded the strength of the dollar, given how much it had previously risen on the back of the nation’s strong economy and elevated interest rates, and it could bounce back if worries about a global slowdown cause overseas investors to pile into US Treasuries.It also remains solidly entrenched as the world’s key currency, used for the majority of central bank reserves and for the purchase of commodities like oil, in large part because no significant alternative has emerged.But Trump’s actions are rekindling long-simmering discussions about whether overseas governments will accelerate efforts to lessen reliance on the dollar.Trump has said he wants to maintain the dollar’s central role globally, once threatening to retaliate against any country that tries to decouple its trade from the US currency. At the same time, during his campaign he indicated he’d welcome a weaker dollar because it would make US products more competitive.That’s spurred speculation that he could be using his trade war to strong-arm governments into cutting a grand bargain that would do just that, though the White House hasn’t publicly floated any such plans.Yet those goals — of either maintaining the dollar’s standing, or persuading other governments to act in the interest of the US — seem out of sync with Trump’s isolationist agenda and approach that has alienated allies.Trump said he plans to start his reciprocal tariff push with “all countries,” tamping down speculation that he could limit the initial scope of tariffs set to be unveiled today.The market’s focus is rapidly shifting to an outlook where recession is suddenly a possibility again, fuelling a retrenchment from risk and appetite for the safest assets ahead of Trump’s so-called “Liberation Day.” That’s helped propel a 2.6% gain for US government debt this quarter, with Treasuries outperforming US equities for the first time in five years. Meanwhile, the S&P 500 is enduring its worst three-month period compared to the rest of the world since the 1980s, according to a Bloomberg report.Despite warnings about long-term headwinds for the dollar, here’s the undeniable reality: Dollar is the king, still.The US currency is on one side of almost 90% of foreign-exchange transactions and accounts for two-thirds of international debt.To be clear, no one would betting that the dollar’s decline will be a straight line as Trump’s tariffs policy continues heighten tensions across the world and the threat of a US recession and geopolitical risks foster demand for havens.