Speculations about currency intervention led to the US dollar falling below 97

The US Dollar Index (DXY) fell below the psychologically important level of 97 last week, marking the first such result since September of the previous year. This movement has sparked active discussions among investors and traders, who have begun to build speculative assumptions about a possible coordinated currency intervention by the US together with Japanese authorities. Such actions could call into question the status of the US dollar as a reliable global reserve currency.

Speculators See Signs of International Coordination

According to ChainCatcher data analysis, the scenario of a joint intervention by Washington and Tokyo in the currency market has become the main subject of speculative forecasts among market participants. Traders are actively discussing the possibility that the US will join Japan’s efforts to stabilize the yen, which in turn creates additional pressure on the US currency. These speculations reflect growing concern about currency volatility and its potential impact on global financial markets.

Risk of Dollar Weakening Amid Political Coordination

According to Daniel Baeza, Senior Vice President at Frontclear, signals of coordinated actions between central banks could significantly strengthen the short-term weakening of the dollar. This scenario becomes especially serious when the Federal Reserve adopts a more neutral stance on the exchange rate. In this case, the dollar remains without traditional support, leaving more room for speculative pressure from market participants.

Outlook for Recovery

The current decline of the DXY index demonstrates how speculation about possible intervention can significantly influence volatility in currency pairs. Investors are closely watching any signals of policy coordination among leading economies, as such decisions could drastically change the dollar’s trajectory in the medium term.