Impact on each asset
USD ▲▲US dollarStrong tailwind
XAU ▼GoldHeadwind
US ▲US stocksTailwind
SET ▼▼Thai stocksStrong headwind
BTC ▼CryptoHeadwind
Summary
The Dollar Index DXY traded at 101.90, up 0.10%, as the euro sagged due to fiscal stress and political turmoil in France. The dollar reached an 18-month high earlier in the week, while the euro hit a 17-month low near 1.115.
Why it moves markets
Dollar strength reflects rising US yields, eurozone risk aversion, and capital inflows to USD. Emerging currencies like the Thai baht face renewed pressure as carry trades unwind and investors demand higher real yields elsewhere.
Similar past event: The Fed starts its steepest hiking cycle in 40 years (Mar–Dec 2022)
In a rising-rate cycle the dollar is usually the winner, while assets that rely on cheap money (growth stocks, crypto) tend to struggle. When the Fed keeps signalling tightening, be careful trading against the dollar trend. See details
In a rising-rate cycle the dollar is usually the winner, while assets that rely on cheap money (growth stocks, crypto) tend to struggle. When the Fed keeps signalling tightening, be careful trading against the dollar trend. See details
Deeper view and what to watch
This echoes the 2022 tightening cycle when safe-haven flows pushed the dollar higher. If Fed policy remains restrictive, USD/THB may challenge new highs as the baht loses support. Watch for 10–15-year resistance levels if DXY continues higher.
Sources
For education only, not investment advice. Prices and figures change constantly, so check the sources before making decisions.