The U.S. dollar, as measured by the DXY index, retreated on Tuesday and flirted with its lowest levels since late July near 101.55 in a trading session characterized by thin liquidity, with many financial centers still closed for the Christmas holidays and ahead of the New Year’s festivities.
Factoring in recent losses, the DXY index is down about 4.35% in the fourth quarter and about 1.9% in December. This drop is associated with the significant pullback in government bond yields, which have plummeted from the cycle high marked about two months ago.
