Global Uncertainty Rises, US Dollar Index Nears 100

The United States dollar (US$) continues its upward trend against six major world currencies. This is reflected in the US dollar index (DXY), which is rising alongside increasing uncertainty in the global financial market.

According to Yahoo Finance data, the US dollar index was traded at 98.9 on March 7, 2022. This figure is up 3.38% year-to-date (YTD) and 7.14% year-on-year (YOY) compared to March 8, 2021, reaching its highest level since May 28, 2020.

The Russian invasion of Ukraine has increased uncertainty in the global financial market, driving up commodity prices, especially energy, and potentially increasing inflation.

This has led some investors to shift their portfolios to safe-haven assets like the US dollar, pushing the US dollar index upward towards the psychological level of 100.

The DXY index measures the movement of the US dollar against six major world currencies: the euro (EU), Japanese yen (JPY), British pound (GBP), Canadian dollar (CAD), Swedish krona (SEK), and Swiss franc (CHF).

In trading on Monday, March 7, until 5:37 PM WIB, the euro weakened by 0.92% to 1.0815 per US dollar. The British pound fell by 0.75% to 1.3147 per US dollar, the Japanese yen weakened by 0.28% to 115.1 per US dollar, and the Swiss franc weakened by 0.91% to 1.0797 per US dollar. Meanwhile, the Canadian dollar strengthened by 0.03% to 1.2723 per US dollar.