What is the dollar index and why does it matter?

The dollar index tracks the US dollar against major currencies like the euro and yen. When it falls, US assets may look less attractive to foreign buyers, and commodities priced in dollars can firm. For Canadians, shifts in the index can influence the USD/CAD rate and returns on unhedged US investments.

Why did gold hit records as the US dollar fell?

Gold often rises when the US dollar weakens because it becomes cheaper for non-US buyers. Safe-haven demand also grows when policy or growth uncertainty increases. With the loonie firmer and rates expected to ease over time, investors added to bullion, driving a gold price surge in Canadian-dollar terms.

How does the USD/CAD rate affect my Canadian portfolio?

When the loonie strengthens, unhedged US equity ETFs can underperform in CAD terms, even if US stocks rise in dollars. Import-heavy companies may benefit from lower costs, while exporters paid in USD can feel pressure. Review currency-hedged funds and match hedging to your time horizon and risk tolerance.

Could dedollarization sink the US dollar quickly?

Rapid collapse is unlikely. The US dollar still benefits from deep markets, legal clarity, and global liquidity. However, alternative payment systems and diversified reserves can chip away at demand over time. For investors, this trend argues for balanced currency exposure, not an all-or-nothing bet against the greenback.

Global Market Insights

US Dollar Today, January 27: DXY Slides as Gold Hits Records

ByHuzaifa Zahoor January 28, 2026

The US dollar weakened on January 27 as the dollar index slipped and gold touched record territory. For Canadian investors, the mix of a softer greenback, a firm loonie, and a gold price surge matters for portfolios and travel budgets. Markets are watching the Bank of Canada and the Federal Reserve for policy signals that could extend these moves. We break down what this means for the USD/CAD rate, commodity exposure, and risk management in Canada.