The US dollar is the world's reserve currency. Central banks around the world hold the US currency because of its long track record of stability. The US has the world's leading GDP and is the wealthiest nation on the planet. At the same time, the dollar is a free-floating foreign exchange instrument that is fully convertible. The world's second-leading economy, China, puts many controls on its currency that make the yuan less attractive to central banks, monetary authorities, and governments when it comes to their foreign exchange reserve holdings.
The dollar index has been rallying