Just now, the US dollar index plunged sharply

On April 10, 2025, the US dollar index fell significantly again. According to the latest data, there was a notable downward trend in the US dollar index during trading that day, marking a consecutive decline for the dollar index this week. This drastic drop in the dollar index not only reflects the market's concerns about the US economic outlook but also reveals multiple uncertainties in the global economic landscape.

Recently, the US government's trade policies have sparked widespread concern in the market. In particular, the tariff measures announced by the Trump administration are believed to potentially trigger a global trade war, thereby weakening the growth prospects of the US economy. Market analysts point out that the uncertainty surrounding trade policies has led to a decline in investor confidence in the dollar, prompting funds to flow into other safe-haven assets.

Recent economic data from the US has shown lackluster performance, becoming a key driver of the dollar's weakness. The Atlanta Federal Reserve's GDPNow model predicts a -2.8% GDP for the US in the first quarter of 2025, the worst forecast since the COVID-19 pandemic began in 2020. The weakness in economic data has further intensified market concerns about a US economic recession.

Expectations for the Federal Reserve to cut interest rates have surged sharply. The interest rate futures market shows that traders are betting on three rate cuts by the Federal Reserve within the year, each by 25 basis points, with the first cut potentially occurring as early as June. The heightened expectation of rate cuts has diminished the attractiveness of the dollar, leading investors to prefer holding other currencies or assets.

As of the time of the report, the dollar index has fallen over 1%. Its sharp decline has also triggered a chain reaction in global financial markets. Non-dollar currencies have generally risen, with the euro rising to 1.108 against the dollar, reaching a six-month high; safe-haven currencies like the yen and Swiss franc have also strengthened significantly. Additionally, the renminbi has been boosted, with the dollar depreciating sharply against the offshore renminbi in a short period. The significant drop in the dollar index not only affects the trends in the global currency market but also has far-reaching implications for international trade and investment. On one hand, a weaker dollar may raise the import costs for the US, exacerbating inflation; on the other hand, the depreciation of the dollar could lead to capital outflows from the US, further impacting the stability of the US financial market. $BTC