DXY Index Falls Below the 99 Integer Level, What's the Story Behind the Dollar's Pressure?

The US Dollar Index (DXY) has been weak today, dropping to near the 99 mark during trading, with a daily decline of 0.24%. This seemingly modest decline reflects the dollar's phased pressure in the foreign exchange market.

From a technical perspective, the DXY is testing a key support level, with the 99 psychological level becoming a focal point for the market. As an important indicator of the dollar's relative strength, its fluctuations often signal changes in global risk sentiment and capital flows.

The current downward movement of the dollar index may be due to multiple factors. On one hand, market expectations for economic data have adjusted; on the other hand, other major currencies are performing relatively strongly, diverting demand away from the dollar. In this context, the weak performance of the DXY provides opportunities for other assets to breathe.

For crypto market participants, a weakening dollar index usually means risk assets are relatively supported. When the dollar is under pressure, investors tend to shift funds into more aggressive asset allocations, which can have a positive impact on on-chain activity and trading volume.

Next, attention should be paid to whether the dollar index can stabilize below 99 and whether it will continue to test lower support levels.