The U.S. dollar is printing new highs against all BRICS currencies in the foreign exchange markets. The dollar trumps the Chinese Yuan, Indian Rupee, and Russian Ruble among others, and is soaring to new weekly highs. The rise of the U.S. dollar is also weakening gold, as the precious metal hit a monthly low last week.
Also Read: BRICS: Former Treasury Secretary Predicts Future of the US Dollar
The U.S. dollar reached a 10-month high on Tuesday as the DXY index touched 107.10. The greenback is only eight points away from reclaiming its 52-week high of 114.
U.S. Dollar Prints New Highs: Weakens BRICS Currencies & Gold
On the other hand, gold fell to a seven-month low against a surging dollar on Tuesday, Oct. 3, 2023. Gold fell 1% on Oct. 1, pulling it down to its March 2023 lows. The precious metal has now reached the $1,850 level amid a global sell-off due to the rise of the dollar.
Also Read: US, Germany & the European Union React to BRICS Expansion
In addition, the U.S. Treasury bonds touched a 16-year high despite the BRICS alliance dumping $123 billion in U.S. Treasury bonds. Read here to learn how BRICS sold $123 billion in government bonds to bring down the U.S. dollar.
Moreover, India is accused of indulging in a mass U.S. dollar sell-off to keep the Rupee from falling. Reports state that the Reserve Bank of India (RBI) directed a State-backed bank to dump the dollars in the international foreign exchange markets.
Also Read: BRICS: Bank of America Predicts Future of the US Economy
The U.S. economy is holding strong as the CPI data last month came out better than expected. The labor market is opening up to new jobs taking the pressure off from the burdened economy.
The U.S. dollar performed above expectations despite facing a severe onslaught from BRICS who challenged the greenback. Nonetheless, BRICS confirmed that the idea of bringing the U.S. dollar down is a long-term goal. Therefore, the USD needs to withstand the test of time, as other currencies look to dethrone it as the world’s reserve currency.