The Dollar Index (DXY), which reflects the value of the U.S. dollar relative to a selection of other currencies, has plummeted beneath the 100 threshold for the first time since April 2022.
In January, it was observed that the DXY index was following a trend similar to that seen during President Trump’s initial term, and it seems to have confirmed that trajectory. The index has experienced over a 10% decline from its recent peak of 110, marking its lowest point in three years.
As trade tensions between the U.S. and China escalate, investor confidence is increasingly shifting away from U.S. assets, contributing to the downward pressure on the dollar.
Just prior to publishing, China announced an increase in tariffs on American goods, elevating the total rate to 125% from 84%, which underscores its firm position in the ongoing trade conflict.
On a different note, Bitcoin (BTC), which has recently shown resilience by behaving as a low-volatility asset compared to stocks, continues to maintain its position above $81,000.