US dollar index 2021 outlook: More weakness before eventual bounce

The US dollar index (DXY) is headed for the first annual decline in two years as the risk-on sentiment remains. The currency has dropped by more than 8% this year and by more than 12% from its year-to-date high of $103. US dollar dropped against most currencies The US dollar fell against most currencies in 2020. It fell by 8.3% against the euro, 3.3% against sterling, and 4.8% against the Japanese yen. The currency also declined against emerging market currencies like the Hong Kong dollar, South African rand, and the Singapore dollar, among others. This decline is mostly because of