Dollar index DXY returns to 100 mark for first time since last November.

The US Dollar Index (DXY) recently surpassed the 100-level threshold for the first time since November 6, 2025, marking a 0.41% daily increase. This development follows a broader trend of dollar strength, with the index having risen over 7% since October 2024, driven by expectations of Trump-era economic policies and shifting monetary policy dynamics. Key factors underpinning the rally include resilient US services data, stronger-than-expected retail sales, and a rebound in core inflation, which has tempered market expectations for aggressive rate cuts.

The dollar's performance has also been influenced by global economic divergences. Eurozone PMI data and other indicators have heightened expectations of aggressive monetary easing in 2025, potentially widening interest rate differentials in favor of the US dollar. Meanwhile, geopolitical uncertainties and the dollar's traditional safe-haven status have further supported its demand, though recent de-escalation efforts in the Middle East have led to temporary pullbacks, with the index retreating from its two-year high of 108.07 to a weekly low of 105.60.

Technical analysis suggests the index may consolidate within a 105-to-100 range in the near term, with a break above 108.07 potentially signaling renewed upward momentum. Market participants remain closely monitoring Fed policy signals, global trade dynamics, and inflation trends for further directional cues.