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The U.S. Dollar Index (DXY) is closing in on its strongest level since April 2025, a move that reshapes currency risk and cross‑asset correlations. For systematic traders, understanding the drivers behind a surging dollar and translating that insight into model adjustments is essential for preserving edge. Why the Dollar Is Rising Again The recent rally reflects a combination of tighter monetary policy expectations, a rebound in U.S. economic growth, and relative weakness in other major economies. Higher short‑term rates increase the carry advantage of dollar‑denominated assets, drawing capital from emerging‑market bonds and commodity‑linked currencies....