The US dollar has depreciated by approximately 10% against the euro relative to what interest rate differentials would predict. This divergence has emerged since the onset of the US-China trade war and reflects a decoupling of real long-term interest rates between the US and the Eurozone. Market analysts suggest that this gap may represent a risk premium, which would justify a weaker dollar. However, if the difference were driven by stronger US growth expectations, the dollar's current weakness would be inconsistent with that scenario. Additional factors contributing to the dollar's decline include the expanding US fiscal deficit, diminished external confidence in the dollar, and avoidance of the currency due to sanctions. Should the dollar lose its status as the global reserve currency, financial market volatility could increase substantially.