Speculators are betting on the weakening of the dollar: the DXY index broke through the 97 level

The recent weakening of the US dollar creates a fertile ground for speculators. The US Dollar Index (DXY) has made an impressive drop below 97, reaching its lowest level since September. Amid these movements, investors are actively discussing the possibility of coordinated currency intervention between the US and Japan.

For the first time in half a year: key support level broken

The fall of the US index below 97 is a significant event in the currency market. The last time such a level was observed was six months ago, highlighting the scale of current movements. According to ChainCatcher, speculators betting on further dollar weakening have become more active amid rising geopolitical tensions.

Geopolitics and the currency market: potential intervention changes calculations

Discussions about the potential involvement of the United States in Japan’s currency intervention are gaining importance. Experts fear that coordinated actions could significantly undermine the dollar’s position as a global reserve currency. Daniel Baesa from Frontclear notes that any signals of policy coordination could intensify short-term pressure on the dollar.

Pressure on the reserve currency: the role of the Fed’s stance

The key point lies in the Federal Reserve’s position. If the Fed adopts a relatively neutral stance regarding intervention efforts, speculators will have even more reasons to bet on dollar weakness. Such a scenario could lead to further short-term pressure on the US currency.