US Dollar Index Falls to Two-Week Lows Amid Strong Japanese Yen

The US Dollar Index (DXY) extended its decline on Monday, falling to two-week lows as a surge in the Japanese Yen outweighed support from geopolitical tensions and Federal Reserve interest rate hike expectations.

The DXY traded around 98.90, down 0.26% on the day, while USD/JPY fell to a six-and-a-half-month low near 154.40 due to hawkish Bank of Japan expectations, capital repatriation, and the unwinding of Yen-funded carry trades.

Persistent inflation concerns, questions over policy credibility, and political risks continue to weigh on the Greenback, keeping the US Dollar debasement conversation alive.