15 April 2022
The United States dollar index (DXY) retreated broadly from its prevailing bull run in the past two weeks, dropping by up to 3.20% after hitting its two-decade high of 105.
Overvaluation risks grip dollar market
The U.S. dollar’s correction in the last two weeks preceded twelve months of relentless buying.
To recap, the greenback’s weight against the basket of top foreign currencies grew by around 14.3% in a year, primarily as markets looked for safe havens against the fears of a hawkish Federal Reserve and, more recently, the military conflict between Ukraine and Russia.