Finally, the dollar strengthening came to an end from a short term perspective. The dollar index tracks the relative value of the U.S. dollar against a basket of six influential currencies (Euro (EUR), Japanese yen (JPY), Canadian dollar (CAD), British pound (GBP), Swedish krona (SEK), and Swiss franc (CHF).)
Last couple of months dollar index moved in a one-way street and the last couple of days Dollar Index (DXY) went perpendicular nearing 20 Year high followed by an upthrust bar indicating a potential trend reversal. An Upthrust bar is a wide range bar seen during an up-trend when the price makes a new high and closes strongly down on the high volume.
Relative Performance
Year-to-date JPY/GBP depreciated approx 20%. Comparatively, Indian Currency INR depreciated against USD only 9.29%.
In the short term looks like the global currency crisis came to an end.
