- The US dollar fell to a DXY reading of 97.1 after briefly dipping to 96.9 on Tuesday.
- The DXY index has declined about 9.6% over the past year and struggles to reclaim the 100 level.
- Commodities such as Gold, silver, and copper have risen sharply as traders reassess dollar exposure.
- Markets first saw a major drop in April 2025 after Trump introduced Liberation Day tariffs and trade tensions have since expanded.
- Seema Shah, Chief Global Strategist at Principal Asset Management, said fundamentals are converging to weigh on the dollar.
The US dollar weakened again this week as traders reassessed policy and geopolitical risks. Data shows the DXY index dropped to 97.1 after a brief dip to 96.9 on Tuesday, reflecting renewed selling pressure. (According to the DXY chart, see the DXY index.)
The currency’s decline has accelerated since a major fall in April 2025 after Trump introduced Liberation Day tariffs. For about nine months the dollar has rarely recovered, and it has struggled to climb back above the 100 level.
The DXY has lost roughly 9.6% over the past year, outpacing many other assets. At the same time, commodities such as gold, silver, and copper have surged, prompting traders to reconsider holdings in dollars.
Market participants point to expanding trade disputes and tariffs, including strains with close allies, as a factor limiting a quick rebound. The situation has also prompted some developing countries to sell US dollar‑denominated assets and increase holdings of gold to diversify central bank reserves.
Regarding these trends, Seema Shah, Chief Global Strategist at Principal Asset Management, commented as reported; “There are a number of factors coming together,” and “I don’t think this is a ‘Sell America’ trade, but the fundamentals are coming together, and faster than expected.” (See the Reuters report for the full comment.)
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