2026-01-02 13:23:04

At the beginning of the new year, the US dollar has slightly rebounded, but overall remains weak. In 2025, the US Dollar Index (DXY) fell by 9.37%, marking its worst performance since 2017.

What has been weighing down the dollar? There are mainly three forces at play. First, uncertainty around tariff policies has caused some concern in the market—investors are beginning to reassess the attractiveness of dollar assets. Second, risk aversion sentiment has boosted diversification strategies, with investors no longer putting all their chips into the dollar. Additionally, active trading to hedge against dollar depreciation has further strengthened the trend of dollar weakness.

From the foreign exchange market perspective, the dollar's decline against a basket of trade-weighted currencies is evident. This is a signal for investors holding dollar assets and paying attention to exchange rate risks.

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SwapWhisperer

· 6h ago

The US dollar is really struggling this time, with tariffs hanging over our heads—who dares to challenge the dollar head-on? DXY has fallen this much, the worst since 2017... maybe it's time for us to consider reallocating our positions. As risk aversion rises, the dollar has no chance—multi-chain deployment is the way to go. Can't go all-in on the dollar anymore, it's too risky—this is the market's warning. Dollar weakening = opportunity or trap? It depends on how you play it. Tariff uncertainties are the most annoying; the dollar is heading for a downturn.

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NotSatoshi

· 6h ago

The recent decline of the US dollar has been really severe. With so many uncertainties caused by tariff policies, who still dares to hold onto the dollar? --- A 9.37% drop—worst since 2017. This time, diversification is truly necessary. Going all-in on one asset is outdated. --- Risk aversion is rising, and the attractiveness of the dollar is decreasing rapidly. Is anyone still buying the dollar at the bottom? --- Let's do some hedging trades. The dollar feels even more painful. It seems I need to rethink my asset allocation strategy. --- Tariff issues are causing panic. The appeal of dollar assets is no longer what it used to be. What should we do? --- The basket of currencies has also declined. The dollar is really aging; I need to see what else is worth holding. --- The era of diversification has arrived. Relying solely on the dollar is no longer feasible.

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SelfRugger

· 6h ago

The US dollar is so weak, can I still trust my USDT? This is fucking outrageous.

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GateUser-40edb63b

· 6h ago

The recent decline of the US dollar is indeed quite fierce, dropping 9.37% and setting a new record... I just want to ask, what are the guys still holding onto the dollar thinking now? --- The issue of tariffs is really frustrating; multi-chain deployment is the way to go. --- As risk aversion sentiment rises, everyone disperses. The days of the dollar being the sole dominant currency are truly over. --- Wait, does this logic imply that the dollar still needs to keep falling? Then I need to think about adjusting my positions. --- DXY falling so sharply is only a "slight rebound"? What do they mean? Is this the level of a rebound? --- The active hedging trades indicate that big funds have long been bearish on the dollar. We need to keep up with the rhythm. --- Friends holding dollar assets need to wake up; this signal can't be ignored.

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