Short-Form Newswire Style (Punchy and Market-Focused)
Dollar Index Slips Below 98, Easing Pressure on Risk Assets as Rate Cut Bets Surge
The U.S. Dollar Index (DXY) fell below 98 on Wednesday for the first time since early 2022, signaling a potential regime shift for global markets. The drop follows a softer-than-expected U.S. inflation print (2.4% YoY vs. 2.5% forecast), which has cemented expectations for a Federal Reserve rate cut this month.
According to CME data, markets are pricing in a 99.8% chance the Fed lowers rates to a 4.25%–4.50% range at its June meeting.
The weaker dollar may unlock upside for risk assets, particularly cryptocurrencies like bitcoin, which tend to benefit from improved liquidity conditions. Analysts also point to mounting de-dollarization themes and trade policy uncertainty under the Trump administration as contributing factors to the greenback’s decline.
