The global dollar weakened against major currencies due to several factors affecting international financial markets. One of the main causes is the monetary policy implemented by the Federal Reserve (Fed) in the United States. Lowering interest rates and quantitative easing are the Fed’s strategies to support economic growth, however, this also causes volatility in the value of the US Dollar. When interest rates are low, investors tend to look for other assets with better returns, resulting in the Dollar becoming less attractive. Meanwhile, global economic conditions also play an important role. Countries with more stable economic growth or that have good fiscal policies often see their currencies strengthen against the Dollar. For example, the Euro and Pound Sterling have shown a strengthening trend along with faster economic recovery in Europe and the UK compared to the United States. The inflation rate is also a crucial factor in determining the value of a currency. If inflation increases in the US, the purchasing power of the Dollar will decrease, which makes other currencies more attractive. Biden’s cabinet policies that lead to massive stimulus have the potential to increase inflation, resulting in further pressure on the dollar. In addition, geopolitical uncertainties, such as trade conflicts and international tensions, can also affect exchange rates. Protectionist policies imposed by other countries could weaken the dollar, as investors look for more stable currencies amid uncertainty. Market sentiment and investor behavior have a major impact on currency fluctuations. If the market feels optimistic about the global economic recovery, the dollar is likely to weaken. Investors look for assets that are considered safer or that provide higher returns, such as gold or cryptocurrencies, instead of the Dollar. Technical and fundamental analysis are also important to understand the movement of the Dollar. Traders use various indicators, such as Moving Average and RSI, to predict trends. An understanding of key economic data, including unemployment figures and GDP growth, helps predict potential dollar strength or weakness. Additionally, the global health situation, such as the COVID-19 pandemic, contributes to Dollar volatility. The government’s response to the health and economic crisis has a direct effect on market confidence. If there is a significant spike in cases, the uncertainty will cause capital flows to leave the Dollar. Overall, the decline in the value of the Dollar against major currencies is the result of a complex interaction between monetary policy, global economic conditions, inflation, geopolitical uncertainty and investor behavior. Understanding these factors is very important for traders and investors in developing the right investment strategy in the forex market.