On Tuesday, the US dollar index extended its downward trend, with the intraday decline widening to 0.95% to 96.17 points, approaching a four-year low, and plunging to an intraday low of 95.51 at one point. Remarks by US President Donald Trump became a key trigger for exchange rate fluctuations. He stated that he is “not worried about the dollar falling” and even said he could make the dollar fluctuate “like a yo-yo,” leading to a short-term drop of over 50 points in the US dollar index. Market expectations of coordinated exchange rate intervention by the US and Japan continued to heat up, further suppressing the dollar’s performance.
Non-US currencies generally rose. The euro against the dollar gained 0.6%, the pound against the dollar rose nearly 0.7% to $1.3787, its strongest level since October 2021, the dollar against the yen fell nearly 0.7%, the dollar against the Swiss franc dropped more than 1%, and the offshore renminbi against the dollar briefly approached the 6.93 mark. The weakening dollar, combined with the temporary impact of winter storms on the US economy, has become an important driver of rising commodity prices. The market is currently focusing on the Federal Reserve’s interest rate decision to be announced today. If a rate cut signal is released, the dollar may come under further pressure, and non-US currencies and precious metals are expected to continue to benefit.