Dollar index, Staying below the 100 mark for the fifteenth day…Global dollar weakness continues

Dollar index staying below 100 for the fifteenth day (Source: MarketWatch)

The Dollar Index (DXY), a measure of the international value of the U.S. dollar, has remained below the 100 mark for 15 consecutive days, continuing a clear weakening trend in the global foreign exchange market. As of April 30th (local time), the DXY slightly rebounded to 99.43 but still has not recovered the psychological support level of 100.

Looking at the monthly chart, the Dollar Index, which hovered around the 103 mark in early April, showed a rapid decline after mid-April and has consistently stayed below the 100 mark since April 15th. This month's lowest point was 97.92, a figure close to the lowest level since 2022.

Experts analyze that this is the result of a combination of recent U.S. trade and monetary policies. President Donald Trump's large-scale tariff policy, which is increasing global trade uncertainty, seems to burden dollar demand. Additionally, the relative strength of major currencies like the Euro and the Yen, and expectations of U.S. interest rate cuts, are cited as factors bolstering the dollar's weakness.

Particularly, as funds move to traditional safe-haven currencies, such as the Swiss Franc, Euro, and Yen, the dollar's function as a refuge is said to be cracking. In fact, amid the recent move to restructure global assets, German and Japanese government bonds, Euro-based and Swiss Franc-based ETFs are gaining popularity.

The Dollar Index is an indicator of the dollar's value against the major six currencies (Euro, Yen, Pound, Canadian Dollar, Swedish Krona, Swiss Franc) and is considered an important indicator reflecting global investors' trust and risk preferences.

Moving forward, the Federal Reserve's interest rate policy, the direction of the U.S.-China trade negotiations, and global tension situations are expected to be key variables determining whether the dollar recovers.