**Dollar Index's 9.6% Plunge in 2025: What Triggered the Sharp Reversal?**
The DXY tells a dramatic story about 2025. The US Dollar Index closed the year at 98.28, marking a staggering 9.6% annual decline—its worst performance since 2017 when it dropped around 10%. Multiple sources including Barchart (reporting 9.37%), Trading Economics, and Reuters confirm the weakness. For currency traders and global investors, this wasn't just a number—it fundamentally reshaped carry trade dynamics and export competitiveness across multiple markets.
**Understanding the DXY Collapse: Three Rate Cuts Changed
The DXY tells a dramatic story about 2025. The US Dollar Index closed the year at 98.28, marking a staggering 9.6% annual decline—its worst performance since 2017 when it dropped around 10%. Multiple sources including Barchart (reporting 9.37%), Trading Economics, and Reuters confirm the weakness. For currency traders and global investors, this wasn't just a number—it fundamentally reshaped carry trade dynamics and export competitiveness across multiple markets.
**Understanding the DXY Collapse: Three Rate Cuts Changed