The US Dollar Index has fallen to its lowest level in three years at 96.2, as foreign investors grow increasingly wary of America's $38 trillion debt load and political uncertainty.
Currency Impact
- EUR/USD: $1.18 (strongest euro in 3 years)
- USD/JPY: ¥138 (yen strengthening)
- GBP/USD: $1.35
- Gold: $2,950/oz (benefiting from weak dollar)
Treasury Secretary warned that continued dollar weakness could increase import costs and inflation. However, exporters are benefiting, with S&P 500 companies earning 40% of revenue overseas seeing a currency tailwind.