How the Trade Weighted Dollar Hides a Currency War

The US dollar index (DXY) shows the greenback at 98.94, near flat for the month. But Lucas and Luna dig into the trade-weighted dollar index, which tells a very different story: at 119.3, it's down only modestly. Why the divergence? Because the dollar is weakening against most currencies, but still strong against the Chinese yuan and other trade partners. Meanwhile, the Korean won (EWY) surged 13.1% in a week, while the yuan (FXI) fell 1.3%. This episode explores how the trade-weighted index masks a currency war between the US and China, with implications for emerging markets, inflation, and the Fed's next move. #TradeWeightedDollar #DXY #FederalReserve #ChinaYuan #KoreanWon #EmergingMarkets #CurrencyWar #ForeignExchange #Inflation #FedPolicy #EWY #FXI #CurrencyDivergence #BusinessPodcast #FexingoBusiness #Economics #CurrencyConversations #GlobalMarkets Keep every episode free: buymeacoffee.com/fexingo