Dollar Index Plunges Below 101, Hitting a Year-Long Low

IconCryptoNewsTerminal Staff23 Aug, 2024

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Dollar Index Plunges Below 101, Hitting a Year-Long Low

The dollar index (DXY), a measure of the value of the U.S. dollar against a basket of currencies of major countries, has dropped below 101 for the first time since December last year. According to TradingView, the DXY is currently trading at 101.081, down by 0.43%. This decline in the dollar's value is a significant development, as a strong dollar can negatively impact the global economy by making U.S. goods and services more expensive for foreign buyers. Several factors may have contributed to the dollar's recent weakness, including the Federal Reserve's decision to raise interest rates more slowly than other central banks. This has made the U.S. dollar less attractive to investors seeking higher returns. Additionally, the ongoing conflict in Ukraine and its impact on the global economy have also contributed to the dollar's decline.

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