US Dollar Index (DXY) climbs to its highest level in 18 months.

The dollar index held around 102.2 on Monday, close to the peak of 102.54 reached last week — its strongest since April 2025. The move extends a fourth consecutive weekly gain, the longest streak since 2025.

The drivers behind the move:
• Middle East tensions: Escalation around the Strait of Hormuz and shipping routes is supporting safe-haven demand for the dollar.
• Elevated oil prices: With the US now a net energy exporter, higher crude prices are acting as a dollar-supportive factor rather than a drag.
• Rate expectations: Rising Treasury yields and fading bets on near-term Fed easing are fueling interest in the dollar.
• Relative growth: Strong earnings, resilient consumer spending, and AI-related investment continue to support the US growth narrative.

The index climbed from roughly 98.8 in early September to above 102, breaking through the July high of 101.6. A stronger dollar typically pressures risk assets, and the correlation is visible: Bitcoin has pulled back toward $83,000 as the DXY pushed higher.

Where do you see the dollar heading next: consolidation near 102, or a further push higher? 👇

#DXY #GateSquare #Macro #Forex
#BTCUp1.17%

Not financial advice.