The dollar it leaves behind the national currency of almost all countries in the group G20. The “champion” of sliding is Turkish poundwhich since the beginning of 2024 has lost the 8.8% of its value against the US currency. But the Japanese yen has also depreciated by 8%, while the won, the currency of South Korea, records losses of 5.5%.
The weakening of the currency does not only concern developing economies. The Canadian dollar, for example, has depreciated by 4.4%, the Australian dollar by 3.3%, while losses for the euro are limited to 2.8%.
Appreciation due to “reluctant” FED?
But why is the US dollar constantly strengthening? US data suggests that inflation is lurking and may return soon.
Thus, the traders they are betting less and less on a rate cut, which is helping to boost the US currency’s gains. In 2024 alone the Bloomberg Dollar Spot Index, which tracks the dollar against a dozen major currencies, has risen by at least 4%. In addition, rising tension in the Middle East favors the strong dollar, which is seen as an attractive “safe haven”. On top of that, most economies show weak growth indicators, while at the same time in the US the economic data exceeds all expectations, even in terms of employment or retail turnover.
Read more at DW
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