LONDON, April 3 (Reuters) - Deutsche Bank warned on

Thursday of the risk of a crisis of confidence in the U.S.

dollar, saying major shifts in capital flow allocations could

take over from currency fundamentals and currency moves become

disorderly.

The dollar, the world's No.1 reserve currency, came under

broad-based selling pressure on Thursday as U.S. President

Donald Trump's latest tariff salvo raised concerns about U.S.

recession risks.

"Our overall message is that there is a risk that major

shifts in capital flow allocations take over from currency

fundamentals and that FX moves become disorderly," Deutsche

Bank's George Saravelos said in note.

He added an acceleration in the dollar's decline would be

unwelcome for global central banks.

"The last thing the ECB wants is an externally imposed

disinflationary shock from a loss in dollar confidence and a

sharp appreciation in the euro on top of tariffs," he said,

referring to the European Central Bank.

"Expect pushback. We are in the midst of dramatic regime

change in markets."

The dollar was last down over 1.5% against the euro and yen

and more than 1% against sterling.