US Dollar Index Falls to 3-Year Low Amid Trade Tensions, BTC Rebounds

• The Index has lost almost 10% since the start of the year due to the weakening of the currency.
• The Dollar Index (DXY), which compares the US dollar to a group of six other currencies, has hit a new low of 98.23.

As the world’s reserve currency, the US dollar (USD), falls under the strain of intensifying global trade tensions caused by President Trump, the US Dollar Index (DXY) has hit its lowest level in three years.

Data from TradingView shows that the Dollar Index (DXY), which compares the US dollar to a group of six other currencies, has hit a new low of 98.23, its lowest level since March 2022. The dollar index has hit a new three-year low, falling below 98.5. Market analysts warned that things are heating up.

Weakening Dollar

The Index has lost almost 10% since the start of the year. Due to the weakening of the currency and investor confidence in the US caused by Trump’s trade tariffs. Nonetheless, it had a comparable drop from 114 to 101 in October–December 2022 due to the depreciation of the dollar.

This decline, however, has been more severe, and more suffering is anticipated in the absence of swift trade agreements. The dollar hit a 14-year low of 0.81 Swiss francs and a 14-year low of 141 Japanese yen. While the euro is trading over $1.15.

Analysts also said that the price of gold had risen to a new record high of $3,380/oz. As investors seek refuge in safe havens during the currency crisis, the precious yellow metal—which typically moves at a snail’s pace—has jumped a staggering 29% in dollar terms since the beginning of this year.

In the meantime, while trading in Asia on Monday morning, Bitcoin climbed 3.5% to recapture a four-week high of $87,550, seemingly decoupling from tech stocks and realigning with gold. Instead of reversing course and falling back below the barrier level, Bitcoin seems to be retaining gains, trading above $87,500 as this is written. 

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