Dollar index, Collapse below 98 line after 3 years... Is trust in American assets shaken?

DXY continuously declining (Source: MarketWatch)

The international status of the Dollar is shaking. On the 21st, the Dollar Index (DXY) recorded a drop of 1.3% to 98.112 compared to the previous day. This is the lowest level in about three years since March 2022. The Dollar Index is an indicator that reflects the relative value of the U.S. Dollar compared to the currencies of the six major countries, including Euro, Yen, and Pound.

This sharp decline is interpreted as a result of a combination of factors, including the recent announcement of a large-scale tariff policy by U.S. President Donald Trump, pressure for rate cuts by the Federal Reserve, uncertainties in U.S.-China trade, and a sharp rise in U.S. Treasury yields. As doubts about the U.S.'s credit rating increase again, there is a clear trend of global investors turning to alternative safe currencies such as Euro, Yen, and Swiss Franc.

The Dollar's weakness can stimulate the rise in import prices and inflation concerns, and at the same time act as a factor stimulating the demand for non-Dollar assets such as Gold and Bitcoin. Market experts warn that if the Dollar's weakness continues, it could lead to structural changes in the global foreign exchange and commodity markets.