Core Viewpoint - The U.S. Treasury Secretary, Janet Yellen, emphasizes a strong dollar policy, indicating that the U.S. will maintain its position to support the dollar's value in the global market [1] Group 1 - The U.S. is pursuing a strong dollar policy, which is expected to influence global currency dynamics [1] - The European Central Bank (ECB) is anticipated to lower interest rates, which may lead to a depreciation of the euro [1]

Core Viewpoint - The article discusses the recent decline of the US dollar index, indicating a shift in market sentiment and potential implications for the global economy and currency markets [1][10][14]. Currency Movements - The US dollar index fell below its lowest point since December 10, with the dollar against the yen hitting a new low since October of the previous year [1][2]. - The euro reached its highest point against the dollar since December 10, trading around 1.05 USD [3]. - The offshore yuan appreciated against the dollar, with the onshore yuan rising by 143 points compared to the previous trading day [4]. Market Reactions - European markets experienced significant declines due to tariff concerns, with European bank stocks seeing their largest drop in seven months, particularly affecting Spanish banks with exposure to Mexico [5]. - US stock futures also fell, with the Nasdaq 100 index futures showing increased declines, while spot gold prices rose by 1% during the day [6]. Dollar Strength and Economic Policies - The strong dollar trend observed in the last quarter of the previous year, driven by expectations of inflation and reduced interest rate cuts by the Federal Reserve, has reversed, leading to a decline of approximately 2.3% in the dollar index this year [8][10]. - Analysts suggest that the factors influencing the dollar index have shifted from risk aversion and inflation expectations to economic fundamentals, with concerns over the impact of tariff policies on the US economy [11]. Future Outlook - The new US Treasury Secretary Scott P. Baer stated that the US will continue to pursue a strong dollar policy, but there are indications that the dollar index may trend downward in the long term [14]. - Analysts predict that factors suppressing the dollar will become more prominent, including ongoing fiscal deficits and a monetary policy environment favoring lower interest rates [16]. - The potential for a re-evaluation of the dollar's exchange rate during Trump's second term raises questions about the feasibility of new currency coordination mechanisms [17].