ECB: Geopolitical Fragmentation Hasn't Dented Reserve-Currency Demand

The European Central Bank found no significant evidence that geopolitical fragmentation risks have reduced demand for major reserve currencies. The WSJ Dollar Index closed at 97.09 on July 17, 2026 — 7.50% below its record 105.14. The ECB finding suggests the dollar's softness reflects cyclical positioning, not a structural shift away from dollar dominance.