Dollar gains strength against currencies of US political rivals
In recent weeks, the currencies of several countries have fallen to levels not seen for years.
The Indian rupee is at minimum levels and the yuan reached prices not seen since 2008.
The US dollar has shown gains against the Chinese yuan, Japanese yen, Russian ruble and Indian rupee in recent weeks. This phenomenon of re-dollarization in the global economy has been evident as the greenback strengthens against the currencies of its main political and economic rivals.
According to data According to TradingView, the Chinese yuan has hit unprecedented lows against the US dollar, valuing at USD 0.13 per CNY, a level not seen since 2008. when the yuan was helped by the US economic crisis that year.
Macroeconomic specialists, such as Spencer Hakimian, founder of Tolou Capital Management, indicate that China is intentionally devaluing its own currency to soften the impact of US tariffs, a strategy that they already applied in 2016 and “worked.”
At the same time, the Japanese yen has also seen minimums in its valuation against the greenback in recent weeks, reaching levels not seen since July 2024with quotes of 0.0063 dollars for each yen, a figure first seen in May 1990.
In the case of the Russian ruble, this currency this at a level not seen since March 2022, when the war in Ukraine began, with prices of just USD 0.00969 per ruble. The Indian rupee has also shown notable weakness against the dollar, reaching historical lows of just USD 0.01 for every rupee.
As for the euro, the currency of the European Union, it has shown weakness for at least three months, hitting lows not seen since October 2022, with quotes of USD 1.02 for each euro.
This trend in which the dollar is gaining strength against this basket of currencies occurs despite efforts to de-dollarize the world economysuch as the agreements between Russia and China to exclude the dollar from their trade negotiations, as reported by CriptoNoticias. Russia, for its part, has plans for de-dollarization, which have taken several hits recently.
The redollarization currently observed seems to be part of the “Trump effect,” since the president who is about to take office has expressed its intention to apply tariffs to countries that move away from the use of the dollar. This effect has also led to the dismantling of the BRICS de-dollarization plan, with Russian President Vladimir Putin stating that Russia is not planning to abandon the dollar, as this media reported.
The strength of the dollar against these currencies reflects not only the domestic economic policy of the United States, but also global trade and geopolitical tensions, which directly influence the foreign exchange market. Current dynamics suggest that the preeminence of the dollar on the international stage will not give way easilychallenging the de-dollarization attempts promoted by some nations.
