As the US dollar depreciates, which non-US assets are more attractive?

The $USD Index(USDindex.FOREX)$ has broken through the 98 mark, marking the first time since March 2022, with a drop of over 1% within the day.

So far in 2025, the USD index has fallen by more than 9%, making it the worst start to a year since 1995.

To put it simply, the USD index breaking through the 98 mark is mainly due to the following reasons:

1. Trump's "Troublemaking"
   Trump has recently started "speaking out of turn" again, threatening to fire the Federal Reserve chairman and demanding that the Fed cut interest rates. This kind of "reckless talk" has made investors feel that U.S. economic policies are unstable. They are getting nervous and quickly selling off the dollar, which has led to the decline of the USD index.

2. Trade Policy "Adding to the Chaos"
   The Trump administration has started imposing tariffs on other countries again, causing trade tensions. Investors are afraid that the economy will be affected and are even more reluctant to hold the dollar, further driving the dollar down.

3. Holiday "Amplifying" Volatility
   April 21 is the Easter holiday, and many countries' markets are closed, making the foreign exchange market very quiet. In this situation, even a small fluctuation can be magnified, making it easier for the USD index to plummet.

4. Investors "Pessimistic" about the Dollar
   Recently, hedge funds and other major investors are not optimistic about the dollar and think it will continue to fall. Once this sentiment spreads, everyone follows suit and sells, causing the USD index to keep dropping.

5. Other Currencies "Stealing the Show"
   When the USD index falls, other currencies like the euro, New Zealand dollar, and Japanese yen are rising. With the dollar weakening, other currencies appear more valuable, which also makes the USD index look even worse.

In summary, the decline of the USD index this time is the result of a combination of factors: Trump's "reckless actions," trade policies "adding to the chaos," the holiday market "quietness," investors "not being optimistic," and other currencies "stealing the show."

Impact on Individual Investors

Portfolio Adjustment: For investors holding dollar assets, the depreciation of the dollar will lead to a reduction in the value of their assets. Therefore, they may consider adjusting their investment portfolios, increasing the allocation of other currency assets or non-dollar assets, such as the euro, Japanese yen, gold, and emerging market assets.

Increased Overseas Investment Opportunities: The decline of the dollar may make assets in other countries relatively more attractive, providing investors with more overseas investment opportunities. Investors can pay attention to stocks, bonds, real estate, and other assets in countries and regions with sound economic fundamentals and stable currencies.