The DXY briefly fell below 100.0 as traders unwound long USD positions following the Federal Reserve’s latest policy decision.
The US Dollar Index (DXY) extended losses after the Federal Reserve’s recent meeting, briefly dipping below 100.0 as traders reduced long positions. The move reflects a broader unwinding of USD bets against G9 currencies, particularly the euro.
The decline mirrors levels last seen in June, following comments from former Fed official Kevin Warsh. Positioning data had shown stretched net-long USD exposure, amplifying the selloff as markets reassessed policy expectations.
EUR/USD rallied as the dollar weakened, though the pair’s momentum remained tied to shifting Fed rate cut bets and positioning adjustments.