The U.S. dollar has reversed a months-long slide and is on track for its first monthly advance of 2025 after a late-July surge lifted the Dollar Index back to the psychologically important 100 mark. The gauge, which measures the greenback against six major peers, had fallen as low as 96.37 on July 1—its weakest level since February 2022—but rallied more than 3% in July, the strongest monthly performance since September 2022 and the biggest five-day gain in three years. Traders credited the rebound to signs of U.S. economic resilience and a Federal Reserve that has so far resisted pressure to cut interest rates. Chair Jerome Powell reiterated a ‘patient’ stance after the July policy meeting, helping support Treasury yields and underpinning demand for the currency. Sentiment toward the dollar also improved as President Donald Trump clinched a series of trade agreements that reduced uncertainty over the administration’s tariff policy. Abroad, the Bank of Japan left its short-term rate at 0.5% but upgraded inflation forecasts, sending the yen on a volatile path that further buoyed the greenback. With July closing at two-month highs, analysts are watching whether the dollar can extend its momentum after reclaiming the 100 threshold.