Interest rates and USD strength are positively correlated.
An increase in US interest rates will typically result in a strengthening of the USD.
The reason is...
Foreign investors tend to flock to US assets, such as bonds and fixed bank rates for higher returns.
Higher demand for US assets drives up their price, and as a result, the USD strengthens.
As for...
The US Dollar has been in the limelight and not in a good way. In fact, he US dollar has not been dimmer since 22 September 2022 where it was trading at 114.42.
Currently it’s at 103.90 (9.19%) down…
But what does it all mean?
Why is the Dixie such a popular index to understand, and trade.
You see it in the news every time you turn on Bloomberg and you see...