Here’s the English summary:
The US dollar is evolving into its “strongest of the year” form, overshadowing currencies in China, Japan, and South Korea. While the ICE Dollar Index (DXY), which measures the USD against a basket of six major currencies, has not yet reached its year-high of 106.52 (currently around 105.54), the Bloomberg Dollar Spot Index, which covers a broader range of currencies, has already surged to its highest closing level since early November last year, closing at 1267.71 points on Thursday.
The recent strength of the US dollar is no longer solely driven by expectations of higher interest rates from the Federal Reserve. Instead, it reflects market confidence in earlier-than-expected rate cuts by the Fed amidst disappointing US economic data. This divergence is notable when comparing the US Dollar Index to the 10-year Treasury yield, which has been declining recently while the dollar remains strong.
This shift poses challenges for non-US currencies, especially in Asia, where the Japanese Yen, South Korean Won, and Chinese Yuan have faced renewed depreciation pressures. Countries are closely monitoring these developments, with Japan indicating readiness to intervene in forex markets if necessary, and South Korea expanding currency swap limits to stabilize the Won.
In summary, amidst the US dollar’s current strength, global currencies are under pressure, prompting strategic responses from central banks and policymakers to manage exchange rate risks and economic stability effectively.
