BRICS countries are pushing currency diversification and local-currency settlements rather than an abrupt end to the US dollar’s role in global trade. Member nations are increasingly using currencies such as the rupee, ruble, yuan and dirham for bilateral trade to reduce transaction costs and strengthen financial cooperation.

BRICS focuses on diversification over de-dollarisation

The 18th BRICS Summit will be held on September 12–13, 2026, at Bharat Mandapam in New Delhi, under India's chairship, with energy security and world oil dynamics forming a core part of the discussions.

BRICS summit 2026: Tehran New Delhi direct

At the 2026 BRICS Summit in New Delhi, India is pushing a pragmatic plan to reduce reliance on the US dollar through local-currency trade settlements and greater CBDC connectivity. Rather than pursuing a common BRICS currency, the focus is on building alternative payment mechanisms while strengthening financial cooperation among member nations.

BRICS summit 2026: India's approach to reducing dollar dependence

Iran's currency has plunged to a new record low, with the rial reportedly weakening beyond 2.02 million to the U.S. dollar on the open market. The slide comes as Iranian households grapple with soaring inflation, rising living costs and the economic fallout of conflict and sanctions. Despite mounting pressure, Tehran says it is implementing a two-year economic recovery plan aimed at stabilising markets, boosting production and reducing the impact of sanctions.


Iranian Rial hits record low as inflation and sanctions bite

Several Asian currencies have weakened significantly against the U.S. dollar over the past two years, with some hitting record lows. This data-driven breakdown explores which currencies fell the most and what it means for regional economies, trade balances, and inflation pressures across Asia.


Asian Currencies Over 2 Years: Dollar Strength & FX Breakdown

The U.S. and China may be clashing over tariffs, sanctions, and market access, but the real battle is playing out quietly in currency markets. At the heart of it is a growing push toward de-dollarisation, a slow but steady attempt to reduce the world’s dependence on the U.S. dollar.

Currency Markets Emerge as New US-China Battleground 

The BRICS alliance is actively shifting its focus towards developing independent, cross-border payment systems to reduce reliance on the U.S. dollar and Western-controlled financial messaging systems like SWIFT. This initiative, often referred to as "BRICS Pay" or the "BRICS Bridge," is gaining momentum, particularly under the 2025 Brazilian and 2026 Indian leadership, with a focus on practical, digital-led infrastructure rather than a single common currency. 


BRICS Focus Shifts To Cross-Border Payment Systems

Currencies are indicators of power, policy, and prudence, and over time they reflect a nation’s ascent or decline. Analysts who scrutinised exchange rate trends for two centuries pointed out that as the United Kingdom’s economic influence waned, the pound also steadily lost ground. Meanwhile, the Swiss franc appreciated as the country maintained neutrality and fiscal discipline and adopted a cautious strategy for reserves. India, however, is at a distinct point in its trajectory. Economists say the rupee’s long-term strength will depend on the consistency and strength of its economic fundamentals and not just on its gold holdings.&nbsp;Researcher and author Costa Vayenas, in his book ‘The Swiss Franc, from 1798 to 2055’, chronicles the evolution of the Swiss franc from its beginning and explores interesting angles like the relationship between gold reserves and currency strength.&nbsp;Over two centuries, currencies have served as the barometers of trust. Dr. Vayenas’s study highlights that the United Kingdom’s pound dominated global trade routes during the 19th century.&nbsp;That era of the pound’s unquestioned supremacy is over. In contrast, Switzerland’s franc has steadily proved to be one of the safest currencies worldwide.&nbsp;Analysts contend that the real issue is not just exchange rate movements, but what helps a currency hold ground in times of global uncertainty, and more often than not, the answer is gold.&nbsp;<h2>Why do gold-heavy currencies command trust</h2>&nbsp;Figures from central bank disclosures and the World Gold Council reveal a consistent trend: nations that hold larger gold reserves relative to the size of their economies command a stronger currency credibility.&nbsp;Switzerland is frequently mentioned in research for this very reason. It ranks among the top countries globally in gold reserves per capita. Historically, the Swiss National Bank maintained substantial gold backing relative to the currency in circulation. The gold reserves do not automatically ensure currency strength, but they do send a strong message: that the currency is supported by tangible assets rather than just economic sentiment.&nbsp;In contrast, currencies with relatively limited reserves or those burdened by persistent fiscal and trade deficits often come under strain during global turbulence. Gold alone does not guarantee resilience, but it reinforces credibility, which, over time, sustains value.&nbsp;<h2>Safe-haven currencies: Why the Swiss Franc stands out</h2>&nbsp;When markets witness turbulence, investor behaviour follows a familiar pattern: trim the risk and shift capital toward perceived safety. Evidence from the 2008 financial crisis, the pandemic years, and recent geopolitical strains shows consistent inflows into Swiss assets, including its currency.&nbsp;Currency experts say Switzerland’s franc draws strength from three strong bases: political neutrality, fiscal discipline, and substantial gold reserves.&nbsp;Investors trust Switzerland’s conservative policymaking and prudent balance sheet management, and hence, even alongside the United States dollar, the Swiss franc attracts demand whenever Europe is under stress.&nbsp;Safe-haven status is not just a branding exercise, but it shapes up gradually over decades of consistency.&nbsp;<h2>India’s position: Strong gold holdings, different economic priorities</h2>&nbsp;India ranks among the world’s largest official gold holders in absolute terms, and Reserve Bank of India data shows that the central bank has steadily raised its gold reserves over the past decade as part of diversification efforts.&nbsp;However, when measured per capita and relative to currency in circulation, India’s gold backing remains below that of Switzerland.&nbsp;<h2>Does that fully explain rupee volatility?</h2>&nbsp;Economists suggest the Indian rupee is also influenced by structural factors such as current account trends, dependence on oil imports, foreign capital flows, and overall growth momentum.&nbsp;&nbsp;India is not designed as a capital-preservation haven. Instead, it is a rapidly expanding emerging economy where the currency plays a key developmental role in supporting exports and competitiveness.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

India is passing through a very interesting phase as a nation—being youthful, aspirational for growth, ambitious, and closely tied to global trade. Experts say the rupee’s enduring strength will rest more on the stability of the country’s macroeconomic fundamentals than its gold reserves.

Currencies are indicators of power, policy, and prudence, and over time they reflect a nation’s ascent or decline. Analysts who scrutinised exchange rate trends for two centuries pointed out that as the United Kingdom’s economic influence waned, the pound also steadily lost ground. Meanwhile, the Swiss franc appreciated as the country maintained neutrality and fiscal discipline and adopted a cautious strategy for reserves. India, however, is at a distinct point in its trajectory. Economists say the rupee’s long-term strength will depend on the consistency and strength of its economic fundamentals and not just on its gold holdings. Researcher and author Costa Vayenas, in his book ‘The Swiss Franc, from 1798 to 2055’, chronicles the evolution of the Swiss franc from its beginning and explores interesting angles like the relationship between gold reserves and currency strength. Over two centuries, currencies have served as the barometers of trust. Dr. Vayenas’s study highlights that the United Kingdom’s pound dominated global trade routes during the 19th century. That era of the pound’s unquestioned supremacy is over. In contrast, Switzerland’s franc has steadily proved to be one of the safest currencies worldwide. Analysts contend that the real issue is not just exchange rate movements, but what helps a currency hold ground in times of global uncertainty, and more often than not, the answer is gold. Why do gold-heavy currencies command trust Figures from central bank disclosures and the World Gold Council reveal a consistent trend: nations that hold larger gold reserves relative to the size of their economies command a stronger currency credibility. Switzerland is frequently mentioned in research for this very reason. It ranks among the top countries globally in gold reserves per capita. Historically, the Swiss National Bank maintained substantial gold backing relative to the currency in circulation. The gold reserves do not automatically ensure currency strength, but they do send a strong message: that the currency is supported by tangible assets rather than just economic sentiment. In contrast, currencies with relatively limited reserves or those burdened by persistent fiscal and trade deficits often come under strain during global turbulence. Gold alone does not guarantee resilience, but it reinforces credibility, which, over time, sustains value. Safe-haven currencies: Why the Swiss Franc stands out When markets witness turbulence, investor behaviour follows a familiar pattern: trim the risk and shift capital toward perceived safety. Evidence from the 2008 financial crisis, the pandemic years, and recent geopolitical strains shows consistent inflows into Swiss assets, including its currency. Currency experts say Switzerland’s franc draws strength from three strong bases: political neutrality, fiscal discipline, and substantial gold reserves. Investors trust Switzerland’s conservative policymaking and prudent balance sheet management, and hence, even alongside the United States dollar, the Swiss franc attracts demand whenever Europe is under stress. Safe-haven status is not just a branding exercise, but it shapes up gradually over decades of consistency. India’s position: Strong gold holdings, different economic priorities India ranks among the world’s largest official gold holders in absolute terms, and Reserve Bank of India data shows that the central bank has steadily raised its gold reserves over the past decade as part of diversification efforts. However, when measured per capita and relative to currency in circulation, India’s gold backing remains below that of Switzerland. Does that fully explain rupee volatility? Economists suggest the Indian rupee is also influenced by structural factors such as current account trends, dependence on oil imports, foreign capital flows, and overall growth momentum. India is not designed as a capital-preservation haven. Instead, it is a rapidly expanding emerging economy where the currency plays a key developmental role in supporting exports and competitiveness.

India is passing through a very interesting phase as a nation—being youthful, aspirational for growth, ambitious, and closely tied to global trade. Experts say the rupee’s enduring strength will rest more on the stability of the country’s macroeconomic fundamentals than its gold reserves.

Gold reserve-backed currencies: Why the Swiss Franc holds firm while the pound slides — What it means for INR

China’s currency has climbed to its strongest level against the US Dollar in nearly three years.


China Pushes for Multi-polar Currency Order

#Gravitas Officials linked to U.S. President Donald Trump's Board of Peace are exploring the launch of a dollar-backed stablecoin for post-conflict Gaza. A move that could potentially reshape how millions of Palestinians buy, sell, and survive. 


America Floats Stablecoin Linked to Dollar as New Currency in Post-conflict Gaza

Indonesia’s rupiah hit a record low against the US dollar as governance concerns and global pressures weighed on investor sentiment. The currency has slid sharply ahead of the central bank’s policy decision, adding to worries over economic stability.


Indonesia Currency Under Pressure Amid Governance Fears 

The Kwacha, the currency of Zambia, is now the best-performing currency in the world. But the currency is vulnerable to risks in the next weeks that can halt its year-end surge, which has extended into 2026.


Zambia's Currency: Kwacha Becomes World's Best-Performing Currency In 2026

South Africa's central bank is planning the most significant overhaul of the country's cash system in decades, proposing the creation of a cash-management utility, the rollout of white-label ATMs and stricter oversight of how physical money circulates to reduce costs and improve access.


South Africa plans to establish a cash-management company

Lugano, a picturesque Swiss city on the Italian border, has quietly become Europe’s most ambitious real-world bitcoin experiment. More than 350 shops and restaurants now accept bitcoin, from McDonald’s to luxury boutiques, thanks to a city-backed initiative that distributed free crypto payment terminals to local businesses. The city even allows residents to pay for some municipal services—including childcare—in bitcoin.

Inside Lugano: The Swiss City Where You Can Pay for Almost Everything With Bitcoin

Nepal's central bank on Thursday issued new Rs 100 currency notes featuring a revised map that includes the Kalapani, Lipulekh and Limpiyadhura territories, the regions India maintains belong to it.


Nepal Issues 100-Rupee Banknotes Featuring Indian Territories Flaming Territorial Dispute

Pakistan’s current account deficit has surged 3.5 times, reaching $733 million, signaling a deepening financial crisis. This major jump is a concern for the nation’s economic stability and could have serious implications on the country’s foreign reserves and currency value.


Pakistan’s External Deficit Deepens: Current Account Jumps 3.5X to $733 Million 

In a dramatic legal turn, former President Donald Trump has pardoned the founder of Binance, the world's largest cryptocurrency exchange. Meanwhile, U.S. regulators have ordered Binance to pay over $4 billion in fines and forfeiture for alleged violations. Watch to understand the implications for the crypto industry and regulatory landscape.

U.S. Orders Binance To Pay Over $4 Billion In Fines & Forfeiture 

A Country That’s Suffered More Than Its Share of Fiscal Issues Is Back in the Headlines. President Javier Milei of Argentina Vowed to Keep His Free-Market Economic Program in Place—That Despite a Crushing Loss to the Center-Left Peronist Opposition in the Province of Buenos Aires on Sunday.

Argentina's markets tumble, with Peso at historic low

The Indian rupee is trading just below its all-time low and is expected to hit new record lows in the coming months. Despite India's strong economic growth, heavy foreign capital outflows and Trump’s 25% tariff move are weighing on the currency. Analysts say the rupee may stay one of Asia’s worst performers.

India's economic crisis: Gold and Silver hit record high | Indian currency hits record low

US retail sales and jobless claims were better than expected on July 17. That offers more support for a hawkish rethink of the Federal Reserve's rate cuts. With the dollar gaining on bets of the Fed being on the sidelines, the real question is: can the dollar's rebound gather some pace?The dollar index marked a second consecutive week of gains, having rallied over 2 per cent since the July 1st low. The recent gains are modest at best when compared to the steep losses in the first half of 2025.However, the dollar has realigned with core macro drivers and notably re-established its positive correlation with 10-year yields. Key bets are that this dollar return ‘functionality’ reduces the likelihood of new selloffs - unless trump fires Fed Chair Jerome Powell. That was reflected in Wednesday’s brief dollar collapse.So far, incoming data, including inflation, backs a delayed fed rate cut view. Without Trump’s relentless pressure, the September Fed rate cut bet wouldn’t even be on the table. Still, anecdotal evidence points to higher dollar hedging activity, which has contributed to keeping the greenback weak.Data showed $311 billion worth of net capital inflows in May, reversing a very modest $14 billion outflow in April. This suggests foreign investors have not lost confidence in dollar-denominated assets yet.<h2>Can the US maintain dollar dominance?</h2>This comes as Trump reiterated his attack on BRICS as he defended the dollar's dominance. Trump pledged to never allow the creation of a central bank digital currency in the United States.He said, "The reserve currency is so important. You know, if we lost that it would be like losing a world war. We can never let anyone play games with us, and that's why, when I heard about this group from BRICS, six countries basically. I hit them very, very hard. If they ever form, if they ever really formed in a meaningful way, it would end very quickly. I will tell you that. They will be gone very long, I don't even think they will do it. They're virtually afraid of me. I also remain fully committed to my pledge never to allow the creation of a central bank digital currency in America; it won't happen."The dollar slipped a touch on Friday as Fed Governor Waller backed a July interest-rate cut to support a softening labour market.But that message failed to catch on in money markets, with swaps pricing less than a 60 per cent chance of a quarter-point cut in September. The futures market assigns no probability to easing this month.Elsewhere, Japan’s election on Sunday might trigger a break above 150.0 in the yen against the dollar. The renewed interest in the dollar is at play, unless Trump reiterates his tariff rhetoric.

The dollar index marked a second consecutive week of gains, having rallied over 2 per cent since the July 1st low. The recent gains are modest at best when compared to the steep losses in the first half of 2025.

US retail sales and jobless claims were better than expected on July 17. That offers more support for a hawkish rethink of the Federal Reserve's rate cuts. With the dollar gaining on bets of the Fed being on the sidelines, the real question is: can the dollar's rebound gather some pace? The dollar index marked a second consecutive week of gains, having rallied over 2 per cent since the July 1st low. The recent gains are modest at best when compared to the steep losses in the first half of 2025. However, the dollar has realigned with core macro drivers and notably re-established its positive correlation with 10-year yields. Key bets are that this dollar return ‘functionality’ reduces the likelihood of new selloffs - unless trump fires Fed Chair Jerome Powell. That was reflected in Wednesday’s brief dollar collapse. So far, incoming data, including inflation, backs a delayed fed rate cut view. Without Trump’s relentless pressure, the September Fed rate cut bet wouldn’t even be on the table. Still, anecdotal evidence points to higher dollar hedging activity, which has contributed to keeping the greenback weak. Data showed $311 billion worth of net capital inflows in May, reversing a very modest $14 billion outflow in April. This suggests foreign investors have not lost confidence in dollar-denominated assets yet. Can the US maintain dollar dominance? This comes as Trump reiterated his attack on BRICS as he defended the dollar's dominance. Trump pledged to never allow the creation of a central bank digital currency in the United States. He said, "The reserve currency is so important. You know, if we lost that it would be like losing a world war. We can never let anyone play games with us, and that's why, when I heard about this group from BRICS, six countries basically. I hit them very, very hard. If they ever form, if they ever really formed in a meaningful way, it would end very quickly. I will tell you that. They will be gone very long, I don't even think they will do it. They're virtually afraid of me. I also remain fully committed to my pledge never to allow the creation of a central bank digital currency in America; it won't happen." The dollar slipped a touch on Friday as Fed Governor Waller backed a July interest-rate cut to support a softening labour market. But that message failed to catch on in money markets, with swaps pricing less than a 60 per cent chance of a quarter-point cut in September. The futures market assigns no probability to easing this month. Elsewhere, Japan’s election on Sunday might trigger a break above 150.0 in the yen against the dollar. The renewed interest in the dollar is at play, unless Trump reiterates his tariff rhetoric.

The dollar index marked a second consecutive week of gains, having rallied over 2 per cent since the July 1st low. The recent gains are modest at best when compared to the steep losses in the first half of 2025.

Dollar regains strength amid Fed uncertainty and Trump's anti-BRICS push

The US dollar posted its strongest weekly performance since late February, buoyed by escalating trade tensions following President Donald Trump’s announcement of sweeping new tariffs. The greenback was up 0.8 per cent for the week, with the Bloomberg Dollar Spot Index rising 0.73 per cent, its best showing in more than four months. Trump’s fresh trade salvo includes a 35 per cent tariff on Canadian imports and blanket levies of 15-20 per cent on goods from most US trading partners. The aggressive measures surprised investors and fuelled concerns that the global trade landscape could deteriorate further, pushing inflation higher and weighing on global risk assets.The Canadian dollar fell 0.26 per cent against the US currency to C$1.3688, after tumbling more than 0.5 per cent in the immediate aftermath of Trump’s announcement. The euro dropped 0.1 per cent to $1.1692 and was on track for a 0.9 per cent weekly decline, while the Japanese yen fell 0.49 per cent to 146.94 per dollar, heading for a 1.6 per cent weekly slide after Tokyo was hit with 25 per cent tariffs.<h2>Traders eye inflation and Fed policy shifts</h2>Market strategists pointed out that investors, previously bearish on the dollar due to rising US deficits and fiscal risks, are now re-evaluating positions amid fears that Trump’s tariffs could stoke inflation and force a policy response from the Federal Reserve. While some JPMorgan strategists acknowledged that bearish sentiment on the dollar has eased slightly, they maintained a longer-term view that the greenback will weaken due to tariff-related uncertainty. Speculative traders also modestly increased their bets against the dollar, holding $18.6 billion in short positions, the most since August 2023.<h2>Risk assets hold steady, crypto surges</h2>Despite the tensions, risk assets showed resilience. Bitcoin surged 3.7 per cent to a record $118,832, while Ethereum jumped 5.9 per cent to $2,987.15, supported by institutional inflows and optimism over upcoming pro-crypto legislation in the US Congress. As the August 1 tariff implementation deadline nears, global markets remain on edge. With diplomatic efforts underway, including from Brazil, which faces 50 per cent tariffs, traders are bracing for more volatility in currency and commodity markets alike.

Market strategists pointed out that investors, previously bearish on the dollar due to rising US deficits and fiscal risks, are now re-evaluating positions amid fears that Trump’s tariffs could stoke inflation and force a policy response from the Federal Reserve.

The US dollar posted its strongest weekly performance since late February, buoyed by escalating trade tensions following President Donald Trump’s announcement of sweeping new tariffs. The greenback was up 0.8 per cent for the week, with the Bloomberg Dollar Spot Index rising 0.73 per cent, its best showing in more than four months. Trump’s fresh trade salvo includes a 35 per cent tariff on Canadian imports and blanket levies of 15-20 per cent on goods from most US trading partners. The aggressive measures surprised investors and fuelled concerns that the global trade landscape could deteriorate further, pushing inflation higher and weighing on global risk assets. The Canadian dollar fell 0.26 per cent against the US currency to C$1.3688, after tumbling more than 0.5 per cent in the immediate aftermath of Trump’s announcement. The euro dropped 0.1 per cent to $1.1692 and was on track for a 0.9 per cent weekly decline, while the Japanese yen fell 0.49 per cent to 146.94 per dollar, heading for a 1.6 per cent weekly slide after Tokyo was hit with 25 per cent tariffs. Traders eye inflation and Fed policy shifts Market strategists pointed out that investors, previously bearish on the dollar due to rising US deficits and fiscal risks, are now re-evaluating positions amid fears that Trump’s tariffs could stoke inflation and force a policy response from the Federal Reserve. While some JPMorgan strategists acknowledged that bearish sentiment on the dollar has eased slightly, they maintained a longer-term view that the greenback will weaken due to tariff-related uncertainty. Speculative traders also modestly increased their bets against the dollar, holding $18.6 billion in short positions, the most since August 2023. Risk assets hold steady, crypto surges Despite the tensions, risk assets showed resilience. Bitcoin surged 3.7 per cent to a record $118,832, while Ethereum jumped 5.9 per cent to $2,987.15, supported by institutional inflows and optimism over upcoming pro-crypto legislation in the US Congress. As the August 1 tariff implementation deadline nears, global markets remain on edge. With diplomatic efforts underway, including from Brazil, which faces 50 per cent tariffs, traders are bracing for more volatility in currency and commodity markets alike.

Market strategists pointed out that investors, previously bearish on the dollar due to rising US deficits and fiscal risks, are now re-evaluating positions amid fears that Trump’s tariffs could stoke inflation and force a policy response from the Federal Reserve.

Dollar logs biggest weekly gain in four months amid Trump’s tariff escalation

The US dollar had recently plunged to its lowest level in three years, driven by a combination of US trade policy shifts and expectations of Federal Reserve rate cuts.&nbsp;This sharp depreciation, which has seen the dollar drop nearly 10 per cent against a basket of major currencies, has reverberated across global markets, causing ripple effects on economic growth and inflation worldwide.The dollar’s steep drop this year comes at a time when the Trump administration’s policies, including its unpredictable trade stance and pressure on the Federal Reserve, have unsettled global investors.&nbsp;The trade tariffs imposed under Trump’s leadership have altered trade relations, while his administration’s push for significant tax cuts amid rising deficits has further strained market confidence.&nbsp;The combination of these factors, along with Trump's apparent indifference to a weakening dollar, has raised concerns among financial experts. The dollar has now lost ground against almost every major currency, including the euro, pound, and Swiss franc.<h2>Scandinavia's currencies surge</h2>Among the standout performers this year are the Scandinavian currencies. The Swedish crown has surged 14 per cent, marking its best performance against the US dollar in over five decades.&nbsp;Similarly, Norway’s crown has climbed nearly 12 per cent, its strongest run since 2008. This strength can largely be attributed to the dollar's weakness, with Sweden’s currency rising by just 4 per cent against the euro and Norway’s by 1.8 per cent. Despite expectations that Sweden will cut interest rates due to slowing inflation, its currency remains resilient.<h2>Safe-haven currencies benefit</h2>The euro, Swiss franc, and Japanese yen have all benefited from the dollar’s fall, rising approximately 10 per cent this year. However, this strength has its own set of complications.&nbsp;In Switzerland, the strengthening franc has caused deflationary pressures, as imported goods become cheaper, raising concerns about further interest rate cuts by the Swiss National Bank. The European Central Bank is also wary of the rising euro, as it risks exacerbating deflationary pressures within the Eurozone. Meanwhile, Japan is grappling with the challenges of a stronger yen, which could hurt its export-driven economy.<h2>Shifting capital flows</h2>In Asia, currencies tied closely to manufacturing have strengthened as well, as capital previously parked in US assets begins to flow back into the region. Taiwan’s dollar surged by 10 per cent in May alone and is up nearly 12 per cent this year.&nbsp;South Korea’s won has also gained around 10 per cent, while Singapore’s dollar, Malaysia’s ringgit, and Thailand’s baht have all risen by 6 per cent. However, China's yuan has lagged, gaining only 2 per cent offshore, partly due to Beijing's efforts to manage its currency within tightly controlled parameters.<h2>Mexico’s peso shows resilience</h2>Despite early pressure from US trade policies, Mexico's peso has bounced back strongly, reaching its highest levels since last August. As US-Mexico trade tensions begin to ease, there are expectations that the peso could strengthen further.&nbsp;Meanwhile, Argentina’s peso remains one of the year’s weakest performers, primarily due to domestic economic policies, but a recent $20 billion loan agreement with the IMF has helped stabilise the situation.<h2>Sterling’s rally amid growing concerns</h2>The British pound has seen a solid 9 per cent increase against the dollar, hitting its highest levels in over three years. However, softer economic data has raised expectations of potential rate cuts by the Bank of England, which could dampen the pound’s rally.&nbsp;Despite this, foreign buyers are reportedly rushing to snap up UK assets before further dollar weakness makes future transactions more expensive.<h2>A global shift in financial sentiment</h2>The fall of the dollar is reshaping global financial dynamics. As investors seek alternatives, such as the Swiss franc, euro, and Scandinavian currencies, the traditional role of the dollar as a safe haven asset is being questioned.&nbsp;The knock-on effects are reverberating through global markets, highlighting the vulnerabilities of the US economy in a time of rising fiscal deficits and unstable trade relations. With global investors reassessing their exposure to the US dollar, the future of the world’s most dominant currency is becoming increasingly uncertain.&nbsp;(With inputs from agencies)

Global markets are grappling with the fallout from the US currency’s biggest slump in years.

The US dollar had recently plunged to its lowest level in three years, driven by a combination of US trade policy shifts and expectations of Federal Reserve rate cuts. This sharp depreciation, which has seen the dollar drop nearly 10 per cent against a basket of major currencies, has reverberated across global markets, causing ripple effects on economic growth and inflation worldwide. The dollar’s steep drop this year comes at a time when the Trump administration’s policies, including its unpredictable trade stance and pressure on the Federal Reserve, have unsettled global investors. The trade tariffs imposed under Trump’s leadership have altered trade relations, while his administration’s push for significant tax cuts amid rising deficits has further strained market confidence. The combination of these factors, along with Trump's apparent indifference to a weakening dollar, has raised concerns among financial experts. The dollar has now lost ground against almost every major currency, including the euro, pound, and Swiss franc. Scandinavia's currencies surge Among the standout performers this year are the Scandinavian currencies. The Swedish crown has surged 14 per cent, marking its best performance against the US dollar in over five decades. Similarly, Norway’s crown has climbed nearly 12 per cent, its strongest run since 2008. This strength can largely be attributed to the dollar's weakness, with Sweden’s currency rising by just 4 per cent against the euro and Norway’s by 1.8 per cent. Despite expectations that Sweden will cut interest rates due to slowing inflation, its currency remains resilient. Safe-haven currencies benefit The euro, Swiss franc, and Japanese yen have all benefited from the dollar’s fall, rising approximately 10 per cent this year. However, this strength has its own set of complications. In Switzerland, the strengthening franc has caused deflationary pressures, as imported goods become cheaper, raising concerns about further interest rate cuts by the Swiss National Bank. The European Central Bank is also wary of the rising euro, as it risks exacerbating deflationary pressures within the Eurozone. Meanwhile, Japan is grappling with the challenges of a stronger yen, which could hurt its export-driven economy. Shifting capital flows In Asia, currencies tied closely to manufacturing have strengthened as well, as capital previously parked in US assets begins to flow back into the region. Taiwan’s dollar surged by 10 per cent in May alone and is up nearly 12 per cent this year. South Korea’s won has also gained around 10 per cent, while Singapore’s dollar, Malaysia’s ringgit, and Thailand’s baht have all risen by 6 per cent. However, China's yuan has lagged, gaining only 2 per cent offshore, partly due to Beijing's efforts to manage its currency within tightly controlled parameters. Mexico’s peso shows resilience Despite early pressure from US trade policies, Mexico's peso has bounced back strongly, reaching its highest levels since last August. As US-Mexico trade tensions begin to ease, there are expectations that the peso could strengthen further. Meanwhile, Argentina’s peso remains one of the year’s weakest performers, primarily due to domestic economic policies, but a recent $20 billion loan agreement with the IMF has helped stabilise the situation. Sterling’s rally amid growing concerns The British pound has seen a solid 9 per cent increase against the dollar, hitting its highest levels in over three years. However, softer economic data has raised expectations of potential rate cuts by the Bank of England, which could dampen the pound’s rally. Despite this, foreign buyers are reportedly rushing to snap up UK assets before further dollar weakness makes future transactions more expensive. A global shift in financial sentiment The fall of the dollar is reshaping global financial dynamics. As investors seek alternatives, such as the Swiss franc, euro, and Scandinavian currencies, the traditional role of the dollar as a safe haven asset is being questioned. The knock-on effects are reverberating through global markets, highlighting the vulnerabilities of the US economy in a time of rising fiscal deficits and unstable trade relations. With global investors reassessing their exposure to the US dollar, the future of the world’s most dominant currency is becoming increasingly uncertain. (With inputs from agencies)

Global markets are grappling with the fallout from the US currency’s biggest slump in years.

As Trump fiddles with trade, dollar’s dramatic decline sparks global repercussions

The Japanese Yen is now at the heart of high-stakes trade negotiations between Washington and Tokyo. US President Donald Trump has accused Japan of keeping its currency artificially low to boost exports — and he's now pushing for a stronger yen as part of a broader deal. Our report explains what's at stake — and why a plaza accord-style currency deal may not be so easy this time. Take a look…

Currency dispute looms over Japan talks

The Indian rupee surged to its highest level in nearly 3 months, marking a strong comeback after a turbulent start to the year. With 9 consecutive sessions of gains, the currency erased almost all of its earlier losses, standing out as the best-performing currency in Asia this month.

India's rupee shines in Asia's currency race

Bangladesh Bank has introduced a new currency strategy to stabilize the Taka, which has underperformed most Asian currencies in 2025. The new approach involves daily recalibration of the exchange rate, moving closer to a freely floating system.

Bangladesh eyes freer currency amid economic challenges

Iran's economy is facing a severe crisis as the national currency, the rial, continues its sharp decline. Since July 2024, the rial has lost nearly 50% of its value, trading at over 900,000 to the US Dollar.

Iran's economy minister at risk of dismissal

US President Donald Trump has declared BRICS "Dead". This comes just months after repeatedly threatening 100% tariffs on its members over "de-dollarization" efforts. But why is Trump so concerned about BRICS? Why does the US see any move away from the dollar as a direct threat? And where does India stand in this evolving economic battle?

The Geopolitics of Currency: Why the dollar still rules

Pakistan is celebrating a record high in remittances this year as a result of its attempts to crack down on illegal foreign exchange dealings. Central bank data shows the amount of money sent home by those residing abroad increased by 34 percent year-over-year in the five months leading up to november.

Pakistan's Crackdown on Illegal Dollar Trade Boosts Remittances

Pakistan is celebrating a record high in remittances this year as a result of its attempts to crack down on illegal foreign exchange dealings. Central bank data shows the amount of money sent home by those residing abroad increased by 34 percent year-over-year in the five months leading up to november.



In a significant shift, Bangladesh is set to remove the image of Sheikh Mujibur Rahman, the country's founding leader, from its currency notes. This move, reported by local sources, has sparked widespread debate and raised questions about national identity and the legacy of the nation’s independence.

Bangladesh Plans to Remove Sheikh Mujibur Rahman’s Image from Currency Notes

South Africa's central bank plans to reduce interest rates gradually in 2025, signaling cautious monetary easing.

South Africa's Central Bank To Cut Rates Sparingly In 2025

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BRICS focuses on diversification over de-dollarisation

BRICS summit 2026: Tehran New Delhi direct

BRICS summit 2026: India's approach to reducing dollar dependence

Iranian Rial hits record low as inflation and sanctions bite

Asian Currencies Over 2 Years: Dollar Strength & FX Breakdown

Currency Markets Emerge as New US-China Battleground

BRICS Focus Shifts To Cross-Border Payment Systems

Gold reserve-backed currencies: Why the Swiss Franc holds firm but pound slides

China Pushes for Multi-polar Currency Order

America Floats Stablecoin Linked to Dollar as New Currency in Post-conflict Gaza

Indonesia Currency Under Pressure Amid Governance Fears

Zambia's Currency: Kwacha Becomes World's Best-Performing Currency In 2026

South Africa plans to establish a cash-management company

South Africa plans to establish a cash-management company

Inside Lugano: The Swiss City Where You Can Pay for Almost Everything With Bitcoin

Nepal Issues 100-Rupee Banknotes Featuring Indian Territories Flaming Territorial Dispute

Pakistan’s External Deficit Deepens: Current Account Jumps 3.5X to $733 Million

U.S. Orders Binance To Pay Over $4 Billion In Fines & Forfeiture

Argentina's markets tumble, with Peso at historic low

India's economic crisis: Gold and Silver hit record high | Indian currency hits record low

Dollar regains strength amid Fed uncertainty and Trump's anti-BRICS push

Dollar logs biggest weekly gain in four months amid Trump’s tariff escalation

As Trump fiddles with trade, dollar’s decline sparks global repercussions

Currency dispute looms over Japan talks