The US Dollar Index (DXY) has climbed past the 99 mark for the first time since December 10, reaching a fresh four-month high amid rising global market volatility. This breakthrough reflects growing investor confidence in the greenback’s strength.
Key Drivers Behind the Rally
The surge is largely fueled by expectations that the Federal Reserve will keep interest rates elevated for longer. Despite moderating inflation, strong underlying economic data suggest that a rate cut may be delayed.
- Safe-haven demand for the dollar has rebounded
- Sluggish growth in Europe weakens the euro, boosting DXY
- Capital outflows from emerging markets add upward pressure
Analysts suggest that if US economic data remain resilient, the index could test the psychologically significant 100 level. Meanwhile, pressure on non-USD currencies is mounting, signaling increased forex market turbulence ahead.