Dollar Index Crashes to March 2022 Lows as Yen Surges on Intervention Threats
The U.S. dollar index plunged to 96.17, its weakest level since March 2022, as risk assets rallied across markets. The yen spiked 0.7% to 153.03 after Japan's Finance Minister signaled readiness for coordinated intervention with U.S. authorities to stabilize currency markets.
Emerging market currencies and tech stocks led gains, with 16 of 22 FX pairs climbing and the Nasdaq advancing 1%. The Dow bucked the trend, dropping over 300 points on UnitedHealth's 19% collapse.
Cryptocurrencies mirrored the risk-on sentiment, with Bitcoin (BTC) and ethereum (ETH) showing bullish divergence against the dollar's weakness. Altcoins including SOL, XRP, and DOGE saw increased trading volume on Binance and Bybit as traders rotated out of fiat proxies.