Dollar Index Plunges 10.8% as Currency Realignment Forces Portfolio Adjustments
The U.S. Dollar Index dropped 10.8% in early 2026 following a 14% euro appreciation in 2025, triggering widespread currency volatility across global markets. The British pound gained 7% in 2025 but fell to €1.13 in November 2026, its lowest level since April 2023, while carry trade collapses weakened the Turkish lira by 17%. The shift arrives ahead of Fed leadership transition in June 2026, forcing banks and investors to reassess currency hedges and international allocations.
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