DXY Drops as USD Weakens Against Majors Amid Tariff and Court Turmoil

The U.S. Dollar Index (DXY) declined over the week ending February 27, as the greenback fell broadly against major currencies amid escalating tariff uncertainty and political turbulence following a landmark U.S. Supreme Court verdict. The combination of trade policy disruption and geopolitical instability weighed heavily on dollar sentiment, prompting investors to rotate into alternative safe havens and higher-yielding currencies. EUR/USD and GBP/USD both saw gains as the dollar softened, while USD/JPY likely retreated on risk-off flows favoring the yen. The tariff-related concerns have reignited fears of slower U.S. economic growth and potential supply chain disruptions, which could complicate the Federal Reserve's policy trajectory. Traders should watch for key support on the DXY around the 104.00 level, with a break below potentially accelerating further dollar losses. Near-term resistance sits near 105.00. Market participants are advised to monitor upcoming U.S. economic data releases and any further developments on tariff implementation for directional cues.