Since the financial media went gaga for the greenback back in October, it has fallen from nearly 115 down to 102 last week, a decline of more than 10%.
From a technical standpoint, the dollar index has crossed back beneath the 104 level, representing a key resistance level that had capped rallies going back to the late 1980s.
Because the reversal comes in the context of a larger technical downtrend, and given the fact that the dollar is still about as overvalued relative to its most important trading partners as ever, it looks likely that another major peak has been put in.
If so, it may have important implications for the future of inflation, not to mention the price trends in precious metals and commodities.