AI Spending Bolsters U.S. Resilience and Dollar’s Haven Status

Washington’s high reciprocal tariffs in April 2025 briefly shook confidence in U.S. assets, sending stocks, Treasuries and the dollar lower while reviving debate over de-dollarization. Taiwan’s central bank said the currency nevertheless retains structural advantages: unmatched depth and liquidity in the Treasury market, the United States’ status as a net energy exporter, and an economy reinforced by heavy artificial-intelligence investment. Those strengths continue to underpin the dollar’s role as the leading reserve currency and a global haven.

Materials released for the Central Bank of the Republic of China (Taiwan)’s March 19, 2026 board meeting showed U.S. growth remained resilient in the second half of 2025, supported by AI capital spending. The Fed’s three rate cuts from September through December, totaling 75 basis points, also helped revive demand for U.S. assets. The bank projected 2026 spending by four major U.S. cloud service providers would exceed $600 billion, up more than 50%. After U.S.-Iran fighting erupted in late February, the dollar index rose sharply while the yen, Swiss franc and gold weakened.