The US dollar is outperforming all leading Asian currencies in the forex market in June 2024. The Indian rupee fell to a record low of 83.57 on Wednesday’s opening bell and is among the weakest-performing currencies against the US dollar.
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Out of the top 23 local currencies in Asia, the US dollar has outpaced 22 of them this month. The DXY index, which tracks the performance of the US dollar shows the currency climbing above the 105.20 mark. A stronger US dollar is making the Indian rupee weaker in the global forex market currently.
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The development indicates that the USD is gaining strength in the markets despite threats against its dominance from other local currencies. Currency traders are not taking fresh entry positions into the Indian rupee fearing that the US dollar has an upper hand.
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“Don’t think there’s a lot of fresh positioning (on USD/INR) currently as people are mostly waiting for Fed and inflation data,” said a trader to Economic Times. “State-run banks’ offers were present but they were not hammering (USD/INR) lower,” the trader added.
Currency: US Dollar Comes Out on Top of The Indian Rupee
Currency traders are focusing on the CPI report and FOMC decision before taking an entry position into the Indian rupee. Therefore, all bets are moving towards the US dollar as the Indian rupee is the weakest among its Asian peers.
Analysts predict if the Indian rupee fails to hold on to its resistance levels, it could even dip to 83.72. That’s a sharp decline of nearly 0.2% from its current level of 83.57 price range.
Not just the Indian rupee, the US dollar is also outperforming the Chinese yuan and the Japanese yen this month. While the Chinese yuan has dipped to its six-month low, the Japanese yen is down to its early 1990s level.