Dollar Value Plummets... Falls to Largest Decline Since 2022

WSJ "Perspective on the U.S. is Changing"

The value of the U.S. dollar has plummeted to its largest decline since 2022.

According to CNBC, a U.S. economic media outlet, on the 10th (local time), the dollar index (DXY), which reflects the value of the dollar against six major currencies including the euro, fell by 1.83% to 101.02. The dollar index even dipped below the 101 mark at one point during the session. This is the lowest level since September last year.

Since President Trump's inauguration, the value of the dollar has plunged by more than 7%. It fell by more than 2% just last week when President Trump announced reciprocal tariffs.

The decline in the dollar is accompanied by a sharp drop in U.S. Treasury prices. While it was expected that investors would seek safe assets such as U.S. Treasuries and the dollar as the U.S. stock market plummeted, the actual trend is moving in the opposite direction.

The S&P 500 index fell by 19% from its peak on February 19 to the 9th, while the dollar index fell by 4.5%, and the 10-year U.S. Treasury yield, which had slightly declined since February 19, rose by about 0.25 percentage points since the 2nd of this month.

The Wall Street Journal (WSJ) explained that in the past seven instances where the S&P 500 index fell by this much or more, the dollar rose, and in the last seventh instance from January to June 2022, U.S. Treasury yields rose because the U.S. Federal Reserve (Fed) sharply raised rates to curb inflation.

WSJ analyzed that "the fundamental reason is that global investors' perspective on the U.S. is changing."

Reporter Jeongdong Noh, Hankyung.com dong2@hankyung.com