The DXY index, which measures the performance of the U.S. dollar shows the currency hovering around the 106 price range. The USD had dipped to dangerous lows in January this year hitting the ground at 101.20 level. However, the world’s leading currency bounced back stronger rising from 101.20 to a high of 107 in April 2024. The U.S. dollar surged more than 5% in just four months and the sudden spike is giving the jitters to Asian currencies.
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The U.S. Dollar Hammers 22 Asian Currencies This Year
Last week. Bloomberg reported that the U.S. dollar battered 22 out of 23 Asian currencies this year in 2024. The Asian currency, Japanese Yen received the hardest beating as it fell to its 1990 lows reaching 158.10 on Friday’s closing bell. However, the Yen recovered slightly on Monday climbing to 155.87, which speculations that Japan’s Central Bank intervened in the currency markets by dumping U.S. dollars to stop the Yen from crashing further.
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Read here to know more details on why the Japanese Yen is crashing against the U.S. dollar this year. Additionally, the Chinese Yuan has relentlessly dipped against the U.S. dollar in the last four months. The Chinese Yuan is now at its December 2023 lows and exporters in China are facing the heat of the Asian currencies’ depreciation.
Apart from the top three Asian currencies, the U.S. dollar outperformed the Malaysian Ringgit, Indonesian Rupiah, and Thai Baht, among others.
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In addition, the Indian Rupee fell to its all-time low of 83.61 in mid-April 2024. The rupee recovered in the third week of this month with accusations that the Reserve Bank of India (RBI) sold U.S. dollars to keep the INR from falling. Asian currencies are facing the heat of the rising U.S. dollar with little to no signs of a quick recovery.
