Dollar Weakens as Major Currency Pair Revaluation Takes Hold

The US Dollar Index, which tracks the greenback’s performance against a basket of six major currencies, declined 0.35% to settle at 97.942 in late December trading on the 23rd. This pullback reflects shifting momentum in foreign exchange markets, with mixed performance across key currency pairs.

Among the stronger performers against the dollar, the euro gained ground, with one euro now worth 1.179 US dollars compared to 1.1755 the previous session. Similarly, sterling strengthened to 1.3497 US dollars per pound, up from 1.3458 the day before. These moves suggest renewed investor confidence in traditional safe-haven and growth-linked currencies.

On the flip side, several major currencies depreciated against the dollar. The Japanese yen weakened to 156.2 per dollar from 156.92, while the Swiss franc declined to 0.7877 from 0.7918. The Canadian dollar also softened, moving to 1.3694 from 1.3747. The Swedish krona posted the largest decline among this group, sliding to 9.1684 from 9.2396.

This 0.35% retreat by the Dollar Index reflects broader market dynamics, with investor sentiment rotating away from pure dollar strength toward more diversified currency exposure. The divergence—where commodity-linked and European currencies gain while Asian and resource-backed currencies weaken—suggests markets are recalibrating expectations around growth and monetary policy divergence across regions.