US Dollar Falls Below 100 Points, Reaching Lowest Level Since April 2022, and Loses More Than 10% From Recent Peak
The American dollar has dropped below 100 points on the DXY index, reaching its lowest level since April 2022 and losing over 10% compared to its recent peak.
China Steps Up Trade War by Imposing Tariffs of 125% on American Products, Increasing Pressure on the Dollar and Reinforcing US Economic Isolation on the International Stage
In the face of the dollar’s fragility, Bitcoin remains stable above $82,000, while gold reaches a historic record of $3,230 per ounce, illustrating a shift towards alternative assets in the context of a global monetary transition.
The DXY Below 100 Points, Reflecting Massive Disengagement
The DXY index, a gauge of the value of the US dollar against a basket of major currencies, has dropped below 100 points for the first time since April 2022. This decline marks a retreat of over 10% from its recent high of 110 and places the dollar at its weakest level in three years.
This movement does not come as a surprise to the most astute analysts. Since January, alarming signals have appeared in the DXY’s curves, mirroring the dynamics observed during Donald Trump’s first term. History seems to be repeating itself: as trade tensions intensify, investors are gradually turning away from assets denominated in dollars, accelerating the decline of the currency.
Beijing Raises the Tone and Tariffs
The acceleration in the decline of the greenback came from China. Just before the release of the latest data, Beijing announced a drastic increase in its tariffs on American products, raising them to a combined rate of 125%. This decision marks a major escalation in the trade war between the two superpowers and sends a clear message: China is not willing to back down.
This tariff escalation comes at a tense time for US markets, where assets perceived as too exposed to domestic politics are increasingly avoided by international investors. The dollar, once seen as a safe haven, now seems to be suffering from its own geopolitical isolation.
Bitcoin and Gold Emerge as Alternatives
As the dollar loses its shine, some assets are taking advantage to solidify their position. Bitcoin, which now operates more independently from the stock markets, maintains remarkable stability. The cryptocurrency remains above $82,000, showcasing its resilience in an uncertain macroeconomic landscape.
But it is gold that is capturing the attention of the most cautious investors. The precious metal has surpassed a new historic record by surpassing $3,230 per ounce. This resurgence in popularity reflects the search for stable and tangible values in the face of a weakened American currency due to trade conflicts and market distrust.
Towards a New Monetary Paradigm?
The drop in the DXY is not limited to a simple technical adjustment. It reflects a deeper evolution in global economic balances. At a time when China is asserting its commercial power through concrete measures and digital currencies are gaining legitimacy, the hegemonic role of the dollar in the global financial system seems to be faltering.
In this context, the performance of Bitcoin and the surge in gold are not mere market reactions but symptoms of a monetary transition. If this momentum continues, the global economic landscape could be redefined sooner than expected.
