The U.S. dollar has outperformed all the 11 BRICS currencies in the last 3 months in the forex markets. BRICS is looking to dethrone the U.S. dollar as the world’s reserve currency by putting their local currencies forward for trade. Despite initiating multiple efforts to take on the U.S. dollar, BRICS currencies are ending at a low against the USD. The U.S. dollar not only outperformed BRICS currencies, but also surpassed gold, oil, and other commodities in the international markets.
U.S. Dollar Surpasses All 11 BRICS Currencies in 3 Months
The U.S. dollar reigned supreme as it surpassed all the 11 BRICS currencies in the last three months. The BRICS currencies ended at new lows against the USD despite the bloc attempting to contain the dollar’s growth. The development highlights the power of the USD against the other local currencies in the foreign exchange markets.
Below is the list of all the 11 BRICS currencies that ended at a new low against the U.S. dollar. (The + symbol is the gains for the USD against the BRICS local currencies)
- Brazil (USD/BRL) +5.34%
- Russia (USD/RUB) +8.23%
- India (USD/INR) +1.34%
- China (USD/CNY) +2.30%
- South Africa (USD/ZAR) +5.08%
- Saudi Arabia (USD/SAR) 0.00%
- UAE (USD/AED) 0.00%
- Argentina (USD/ARS) +32.07%
- Egypt (USD/EGP) +0.02%
- Iran (USD/IRR) +250%
- Ethiopia (USD/ETH) +1,250%
In addition, the U.S. dollar trounced gold to its 6-month low falling below the $1,850 mark this month. The gold index against the dollar XAU/USD has fallen to its March 2023 lows. The U.S. dollar DXY index touched 107 this month and is only 7 points away from reclaiming its 52-week high of 114.
In conclusion, the U.S. dollar beat all BRICS currencies, 5 other leading currencies, gold, oil, and commodities in three months. The USD is the de facto stronger currency and no other local currency is close to uprooting its global reserve status.