BREAKING 🚨: U.S. Dollar
The lowest close since March 2022 for the U.S. Dollar Index $DXY on track its 📉📉 Source: Barchart
⚠️True US Dollar bear markets are usually 20-40%:
1970s (-30%) - End of Bretton Woods (USD delinked from gold) 1980s (-40%) - Plaza Accord (G7 nations devalued USD to reduce trade deficits) 2000s (-30%) - Post-9/11 policy shifts, Fed rate cuts The US Dollar is down 9% YTD.
According to Bank of America's Fund Manager Survey, investors are more underweight on the US dollar than at any point in the past 20 years.
Source: @Schuldensuehner @BankofAmerica
The US Dollar decline has been truly remarkable:
The Bloomberg US Dollar Index just dropped to its lowest level since mid-2023. The dollar has fallen over 8% in 2025 and erased nearly all of its gains from the past year. This comes as foreigners are bringing money back home... Source: Global Markets, Bloomberg
The US dollar is on track for its worst performance in three decades
Resource stocks, emerging and other developed markets, and foreign currencies are beginning to perform well. Source: Crescat Capital, Bloomberg
JUST IN 🚨
Hong Kong Dollar Funding Cost plunges by largest amount since the Global Financial Crisis Source: Bloomberg, Barchart
Another enormous climb in the Taiwanese dollar today, up almost 8% over the last two sessions against the USD, by far the biggest two-day increase on record.
▶️ So what's going on? The Taiwanese dollar (TWD) has been surging due to a combination of economic, trade, and market factors in 2025: ✔️ Easing Trade Tensions: Speculation about reduced U.S.-China trade tensions, particularly following indications that China is open to trade talks with the U.S., has boosted optimism for Taiwan’s export-driven economy. ✔️ Strong Economic Growth: Taiwan’s GDP grew at an annualized rate of 9.67% in Q1 2025, with annual growth of 5.37%, surpassing forecasts. A ✔️ Tech Sector Strength: Strong U.S. tech earnings, particularly from companies like Microsoft and Meta, have signaled sustained demand for AI and semiconductors, where Taiwan plays a critical role through companies like TSMC. This has driven foreign capital inflows and supported TWD appreciation.
A currency's reserve status should not be taken for granted.
Just look at what happened to the pound... Source: Augur Infinity
