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How Long Will U.S. Dollar Index (DXY) Continue to Rise?

Mount Equity Group Tokyo Japan > News > Markets > How Long Will U.S. Dollar Index (DXY) Continue to Rise?

The US Dollar Index (DXY) continues its parabolic rise. While it increased by 3% this week, commentators are asking when and at what level the dominance of the US currency will end. The strong dollar translates into a weak performance of other global currencies, traditional markets, and cryptocurrencies.

The Federal Reserve (Fed) continues its policy of financial tightening alongside persistently high inflation in the United States (US). This month saw another interest rate hike – this time by 75 basis points. The Fed’s decisions and the global macroeconomic situation favor the appreciation of the US dollar and the DXY index, which expresses its strength.

The DXY measures the strength of the U.S. dollar against a basket of six major foreign currencies. Among them are the euro, the Swiss franc, the Japanese yen, the Canadian dollar, the British pound, and the Swedish krona.

For example, an index value of 120 suggests that the…

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