US Dollar Index Holds Losses Around 101.00 as Risk Aversion Increases

The US Dollar Index (DXY) is extending its losses, trading near the 101.00 level during the Asian session on Tuesday. This marks the second consecutive day of decline for the greenback, even as risk aversion remains elevated.

Typically, risk-off sentiment supports the dollar due to safe-haven demand, but the current price action indicates other factors are at play. Traders are watching for further cues from global markets and central bank signals.

The DXY measures the USD against a basket of six major currencies: the euro, yen, pound, Canadian dollar, Swedish krona, and Swiss franc.