DBS Bank said that the US dollar index DXY is being crushed by two forces. In the past two days, the US index has fallen below the important resistance level located around 103.30 three times. On the one hand, after semiconductor stocks were sold off, causing major US stock indexes to plummet from record highs, the US dollar regained its role as a safe-haven currency. On the other hand, US Treasury yields, which have accompanied the decline in the stock market, have offset the dollar's safe-haven appeal. The US 10-year Treasury yield plummeted to around 4.03% after remaining in the 4.06-4.12% range for the first two trading days. DBS Bank said that Federal Reserve Daly downplayed recent better-than-expected US non-farm payrolls data and CPI inflation data. As a famous labor economist at the Federal Reserve, Daly believes that the US job market is no longer the main source of inflationary pressure, adding that companies find it difficult to pass on price increases to consumers. Although the Federal Reserve cut interest rates by 50 basis points last month, interest rates are still limited, and there is still a long way to go until the neutral interest rate, which helps reduce inflation to the 2% target.

DBS Bank said that the US dollar index DXY is being crushed by two forces. In the past two days, the US index has fallen below the important resistance level located around 103.30 three times. On the one hand, after semiconductor stocks were sold off, causing major US stock indexes to plummet from record highs, the US dollar regained its role as a safe-haven currency. On the other hand, US Treasury yields, which have accompanied the decline in the stock market, have offset the dollar's safe-haven appeal. The US 10-year Treasury yield plummeted to around 4.03% after remaining in the 4.06-4.12% range for the first two trading days. DBS Bank said that Federal Reserve Daly downplayed recent better-than-expected US non-farm payrolls data and CPI inflation data. As a famous labor economist at the Federal Reserve, Daly believes that the US job market is no longer the main source of inflationary pressure, adding that companies find it difficult to pass on price increases to consumers. Although the Federal Reserve cut interest rates by 50 basis points last month, interest rates are still limited, and there is still a long way to go until the neutral interest rate, which helps reduce inflation to the 2% target.