Why is the dollar rising: the euro is weakening against the backdrop of USD strengthening

Whale_Whisperer · 2026-01-30T07:05:04+00:00

The global currency market is witnessing a trend of a strengthening US dollar and a weakening euro, driven by various economic factors. The dollar index (DXY) has risen significantly, indicating a shift in investor portfolios towards US assets amid uncertainty, while the euro continues to lose value against the dollar due to divergent monetary policies and economic outlooks.

Whale_Whisperer

2026-01-30 07:05:04

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In recent days, the global currency market has been demonstrating a clear trend: the US dollar is strengthening, while the euro is losing ground. This movement is the result of a complex set of factors affecting the global economy and investment flows.

The dollar index shows significant growth

The dollar index (DXY) has increased by more than ten points over the recent period and is currently at 98.8. This indicator reflects the strengthening of the US currency against a basket of other major currencies. The rise in DXY signals that global investors are reallocating their portfolios toward American assets, which traditionally happens during periods of uncertainty or economic weakness in other regions.

The euro weakens against the dollar on the currency market

Alongside the dollar’s rise, the euro is falling. The EUR/USD currency pair has decreased by nearly 20 points and is currently trading at 1.1685. This means that one euro now buys fewer dollars, indicating pressure on the European currency. Such dynamics are often associated with divergence in monetary policy between the Fed and the ECB, as well as differences in economic outlooks.

According to ChainCatcher, this trend reflects a broader reassessment of risks in the global market, where the dollar traditionally serves as a safe haven for investors during periods of volatility.

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