The **US Dollar** is quietly flexing its muscles again today, hovering around **97.9** on the DXY index (as of February 20, 2026), after climbing toward the psychologically key **98** level earlier in the session. This marks a modest rebound in an otherwise downbeat year for the greenback, which remains down roughly **8%** over the past 12 months.
What's fueling this mini-resurgence? Solid US economic signals—stable labor market data, resilient consumer spending, and hints that the Federal Reserve isn't in a hurry to slash rates aggressively—have given the dollar breathing room. Traders are shrugging off earlier dovish expectations, with the currency posting its longest weekly gain streak in weeks. Meanwhile, global uncertainties (from policy divergences to geopolitical ripples) keep safe-haven demand alive.
Yet this strength feels more like a tactical bounce than a full reversal. The dollar has been coiling in a range since late 2025, rebounding from multi-year lows near 95.5 but still far from its 2022 peaks above 107. Bears remain heavily positioned—the most pessimistic in over a decade—setting up potential for sharp squeezes if data surprises to the upside.
In short, the dollar isn't roaring back to dominance, but it's reminding the world it's still the king of reserve currencies—stubborn, resilient, and never quite out of the game. Watch upcoming PCE inflation and GDP flashes for the next clue.