The world's largest Financial Institutions Group is reducing its holdings of US dollar assets and increasing its exposure to European markets, as data show investors are pulling out of US equities and bonds in a long-running trend marred by political turmoil in Washington, waning confidence in the Federal Reserve and the latest tariff dispute launched by Mr. Trump. The dollar has lost more than 7 per cent of its value since January and traders are now watching for signs of a shift to safer European investments such as German bonds. According to a Bank of America survey, investors cut their holdings of US equities in March by the largest amount ever and shifted to Europe at the fastest pace since 1999. Multinational pension funds are leading the divestment trend, with Veritas of Finland, UniSuper of Australia and Danish pension funds all reducing their US holdings. Head of strategy at BNP Paribas said that if European pension funds reduced their exposure to US assets to 2015 levels, it would mean selling 300 billion of euro-dollar-denominated investments.