The US dollar index climbed to 101.44, marking its highest level in 13 months and the strongest reading since May 13, 2025.
The greenback extended gains against a basket of major currencies, including the euro and the yen, as investors sought refuge amid growing market volatility.
The rally was fueled by a dual driver: renewed speculation that the Federal Reserve may need to hike interest rates, coupled with a sharp sell-off in technology stocks.
As equity markets faced pressure, capital flowed into the dollar as a traditional safe-haven asset, reinforcing its upward trajectory.
The yen weakened despite warnings of potential intervention from Tokyo authorities, highlighting the strength of the dollar's momentum.
The move reflects a broader shift in currency market dynamics, with the greenback benefiting from both risk-off sentiment and shifting monetary policy expectations.