Overview
- The DXY sits in the mid-90s after a roughly 10%–11% year-over-year drop, with only a brief rebound after Treasury Secretary Scott Bessent reaffirmed a strong-dollar policy and denied yen-intervention rumors.
- President Donald Trump said he is not concerned and called the currency “great,” sharpening scrutiny of whether officials are tolerating further depreciation.
- Gold has jumped above $5,300 and is up about 22% for the month, while silver has surged past $110 and is up roughly 58%, putting it on track for its strongest monthly rally on record.
- Policy expectations remain pivotal as markets factor in additional 2026 Fed rate cuts and as Trump named Kevin Warsh as his preferred successor to Jerome Powell, a signal that briefly firmed the dollar.
- Flows are tilting toward international and emerging-market equities during the greenback’s slide, while voices such as Robert Kaplan argue that near-$39 trillion U.S. debt strengthens the case for prioritizing currency stability.