US Dollar Under Pressure, Who Benefits?
The US dollar index (DXY), which measures the greenback's strength against a basket of other currencies, continued to weaken on Thursday (October 16, 2025). In the Asian trading session, the index briefly touched its lowest level in more than a week, after declining for three consecutive days. The DXY is currently just below the 98 mark and could continue its decline from its highest level since August last week.
The dollar's weakening is driven by expectations that the Federal Reserve (The Fed) will adopt a dovish (softer) interest rate policy. Investors believe the Fed will cut interest rates by 25 basis points at its October and December meetings. This sentiment is further strengthened by concerns about the impact of the prolonged US government shutdown and the US-China trade war on the country's economy.
With a weakening dollar, other currencies and commodity assets like gold become more attractive to global investors. If this trend continues, economic growth outside the US and the export sectors of developing countries could benefit from more competitive exchange rates. (az)
Source: Newsmaker.id
