The US Dollar Index (DXY) reached 101.10 on November 4, marking a five-week low. This figure represents a 1.7% decline from the 18-month peak of 102.87 recorded in October. Despite this recent dip, the currency maintains a 4% gain for 2026. By November 6, the index rebounded to 102.28.
The decline follows Democratic gains in the US Midterms, which investors anticipate may limit fiscal stimulus and government borrowing. Concurrently, 10-year Treasury yields fell from approximately 5.3% in early October to 4.92% on November 4. These shifts have reduced the immediate appeal of dollar-denominated assets.
Market sentiment is further influenced by concerns over potential regulatory oversight of the artificial intelligence sector. However, labor market data remains robust, with the addition of 165 000 jobs in October. This performance exceeded expectations and fueled speculation regarding a potential Federal Reserve rate hike in December.
Technical analysis suggests the DXY faces critical support levels. Maintaining a position above the 100.90–101.15 range could facilitate a recovery toward 102.87–103. Conversely, a sustained drop below 100.90 may lead the index toward the 99 area. Analysts are currently monitoring upcoming inflation reports and Fed policy signals.
