The US dollar index has fallen to its lowest level in nearly four years.

Due to multiple expectations driving investors to sell the US dollar, the US dollar index continued to decline on January 27, plummeting to its lowest point in nearly 4 years by the closing bell. The US dollar index, which measures the dollar against six major currencies, fell by 0.84% that day and closed at 96.219 in the forex market. Subsequently, the US dollar index dropped further to 95.55, hitting a new low since mid-February 2022. The euro, the currency with the largest weight in the US dollar index, reached the 1.20 level against the dollar for the first time since 2021. Carl Shamota, Chief Market Strategist at Cambridge Global Payments, stated that as the US continues to implement tariff policies and the government may once again face a "shutdown," economic policy uncertainty has significantly increased, leading to the continued decline of the US dollar index.