BlockBeats news: On January 31 (Friday), the U.S. dollar surged sharply, recording its largest single-day increase since July. The plunge in gold and silver prices dragged down exchange rates for currencies ranging from the Australian dollar to the Swiss franc. The U.S. Dollar Index (DXY) closed this volatile month with a rise of approximately 0.9%.
During this period, the index experienced significant fluctuations due to Trump's policies. The dollar rebounded on Friday, benefiting from a decline in precious metal prices and the impact of Trump's selection of Warren to lead the Federal Reserve. However, the index still fell by about 1.4% in January, marking its worst performance since August.
"Overall, market sentiment is quite tense," said Catherine Brooks, head of research at XTB. "The trade of dollar depreciation has currently been put on hold, but this doesn't mean the trade is over." Among G10 currencies, the Australian dollar, Swiss franc, and Swedish krona—currencies affected by precious metal prices—were the biggest decliners. Silver prices recorded the largest single-day drop in history, while gold prices fell by the most since the early 1980s, ending a previous upward trend. (Jin10)