It’s been very much tied to risk appetite and QE. Also stocks.
Dollar went astronomical after Aug 2008, only to drop hard when QE(1) was announced.
Rise in DXY in early-2010 was followed by a drop in DOW below 10,000 in mid-2010. Rise of DXY in early 2011 was concurrent with a drop in DOW to the low 11,000 range. 2012 peak in DXY, DOW hiccuped in April-June.
Like it or not, dollar strength has been pretty much inversely tied to risk appetite since 2008. Historically, this hasn’t been true, but the last few years have been different.
