US Dollar Outperforms Yuan, Yen, Rupee in Currency Markets

Leading Asian currencies, which threatened to dethrone the US dollar as the world’s reserve currency, are bleeding on the charts. Local currencies are under pressure in the currency markets as USD strengthens this week’s indexes. This month alone, USD crushed the Chinese Yuan, Indian Rupee, and Japanese Yen in the currency markets.

The DXY index, which monitors the performance of the USD, shows the currency trading around the 105.96 price level. It had reached a daily high of 106.07 before temporarily retracing on Monday’s opening bell. This month, local currencies such as the rupee, yuan, and yen reached fresh lows versus the US dollar.

US Dollar Moves Upward in Currency Market

On Friday’s closing bell, the Indian rupee dropped to an all-time low of 83.61 per US dollar. However, the Indian rupee temporarily rebounded to 83.43 at Monday’s opening bell.

Conversely, during Monday’s opening bell, the Chinese yuan plummeted to a five-month low versus the US dollar. The Chinese yuan is trading at 7.2 per USD, having fallen to its December 2023 lows. The yuan’s value has already fallen by 1.9% this year and in 2024 alone.

Simultaneously, the Japanese yen hit new multi-year lows versus the dollar this month. The yen fell to 153.82, as the currency remained gloomy on the forex markets. Currency buyers also purchase the US dollar every fall in 2024, solidifying all of its resistance levels.

The growing tensions between Iran and Israel are causing Asian markets to lose financial stability. On Monday’s opening bell, India, China, Japan, and Asia stock markets fell. Investors are concerned that the drone and missile strikes may intensify, causing the market to lose value.