According to The Kobeissi Letter, the US Fed Trade Weighted Real Broad Dollar Index is trading near its 40-year high, reflecting the dollar's strong performance against 26 major trading partner currencies (source: The Kobeissi Letter, June 2, 2025). This elevated level, adjusted for inflation, signals potential overvaluation, which may influence global capital flows and risk sentiment. For crypto traders, a strong dollar often puts downward pressure on digital assets like Bitcoin and Ethereum, as investors favor safer fiat holdings. Monitoring the index is crucial for anticipating liquidity shifts and volatility in both forex and crypto markets.