
Dollar Index Plunges 10.8% as Fed Transition and Geopolitical Risks Trigger Forex Realignment
The U.S. Dollar Index has fallen 10.8% in early 2026 to its lowest level since 2022, driven by uncertainty around June's Federal Reserve leadership change and mounting geopolitical tensions. The British pound dropped 0.5% to $1.3086 despite gaining 7% in 2025, pressured by UK budget concerns and rising gilt yields. Currency analysts expect continued dollar volatility through the Fed transition, with safe-haven flows boosting the Swiss franc.








