The dreams of a de-dollarization world kick-started by developing countries in 2024 remain just that, a dream. The US dollar outperformed all local currencies this year despite facing challenges from developing economies.
The DXY index, which measures the performance of the USD shows it climbing above the 106.80 range in April this month. That’s a surge of 5% since the start of the year when it dipped to a dangerous low of 101.20.
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The Might of the US Dollar in Full Display Against Local Currencies in 2024
The US dollar hammered all leading local currencies including the Pound Sterling, Chinese Yuan, Japanese Yen, and Indian Rupee. The yuan, yen, and rupee looked to throttle the USD in the currency market and come out on top. However, the USD came triumphant outshining all three this year making them fall to new lows.
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The Indian rupee fell to its all-time low of 83.61 this month in April against the US dollar. However, the rupee briefly recovered to 83.36 on Thursday’s opening bell.
On the other hand, the Chinese yuan is now at its five-month low against the US dollar on Thursday’s opening bell. The Chinese yuan is now trading at 7.25 per USD falling to its December 2023 lows. The yuan has already seen a decline of nearly 2% in value in 2024 alone.
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Coming to the Japanese Yen, the leading Asian currency fell to fresh multi-level lows against the US dollar this month. The yen dropped to 153.82 and the currency remains bearish in the forex markets. It is now at its 1990s lows against the USD.
The US exceptionalism comes at a time when the geopolitical landscape is filled with conflicts and turmoil. The escalating conflict in the Middle East between Iran, Israel, and Palestine threatened the prospects of the US dollar. Moreover, the USD came on top despite the turmoil, and de-dollarization threats and now takes the top spot in the currency markets.
